Strong fundamentals, value buying buoys markets; Sensex up 290 pointsMumbai: Strong economic fundamentals, value buying and attractive valuations boosted investor confidence in the Indian equity markets - leading a barometer index to gain 290 points to end at 26,032.38; Nifty gains 71.70 pts to
Mumbai: Strong economic fundamentals, value buying and attractive valuations boosted investor confidence in the Indian equity markets - leading a barometer index to gain 290 points to end at 26,032.38; Nifty gains 71.70 pts to 7,880.70.
The investor confidence seemed to be returning a day after the mayhem in global financial markets and a crash in China which spooked the key Mumbai index into shedding some 1,625 points, or nearly 6 percent.
The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) which opened at 25,916.26 points, was trading at 25,963.02 points (at 2.00 p.m.), up 221.46 points or 0.86 percent from its previous close at 25,741.56 points.
The Sensex touched a high of 26,124.83 points and a low of 25,298.42 points during the intra-day trade so far.
A similar trend played out at the the National Stock Exchange (NSE), where the broader 50-share CNX Nifty made gains during the intra-day trade.
The 50-scrip Nifty of the NSE was ruling higher at 7,876.40 points, with a gain of 67.40 points, or 0.86 percent.
Analysts cited that the Monday's massive correction has made valuations attractive for not only foreign but domestic investors too.
"The market is riding on a wave of value buying on lower levels. The valuations have become very attractive coupled-with the statements that have come-in from the government the investors are regaining confidence," Anand James, co-head, technical research, Geojit BNP Paribas, told IANS.
There is also a sense that the strong economic fundamentals have the potential to hasten the recovery in Indian equity markets in comparison to other larger economies.
"The Indian economy's fundamentals are very strong, be it growth, be it lower current account deficit, slowdown in inflation, pickup in consumer sentiment and hopes of a rate cut. These factors will hasten recovery in India faster than other markets," Devendra Nevgi, chief executive of ZyFin Advisors elaborated to IANS.
Other analysts pointed-out the lull in the global commodity prices, especially crude oil which has fallen to its six-year low as a major positive for the Indian economy and the markets.
"Lower commodity prices and strong fundamentals plus a push towards infrastructure creation will propel the economy. This will certainly catch the attention of the global capital markets once the turmoil has subsided," Vaibhav Agarwal, vice president and research head at Angel Broking.