Ford Assembly election results 2017
  • Akamai
  • CP Plus

Value buying of stocks boosts Sensex, healthcare stocks gain

Mumbai: Value buying of stocks after two sessions of losses and hopes of a delay in next month's US rate hike decision boosted sentiments in the Indian equity markets on Wednesday.Bullish sentiments were seen on
value buying of stocks boosts sensex healthcare...
IANS August 19, 2015 16:24 IST

Mumbai: Value buying of stocks after two sessions of losses and hopes of a delay in next month's US rate hike decision boosted sentiments in the Indian equity markets on Wednesday.

Bullish sentiments were seen on the S&P Bombay Stock Exchange (BSE) with its barometer 30-scrip sensitive index (Sensex) trading 77 points -- or 0.28 percent -- up during the late-afternoon session.

The positive sentiments were milder at the wider 50-scrip Nifty of the National Stock Exchange (NSE). It inched up only 13.30 points or 0.16 percent at 8,479.85 points.

The S&P BSE Sensex, which opened at 27,851.81 points, was trading at 27,908.39 points (at 2.35 p.m.) -- up 76.85 points or 0.28 percent from the previous day's close at 27,831.54 points.

The Sensex touched a high of 28,021.39 points and a low of 27,721.25 points in the intra-day trade so far.

According to analysts, investors were bullish as they expect the slide in the Chinese markets to deter the US Fed from going in for a rate hike in the next month's Federal Open Market Committee (FOMC) meet slated for September 16-17.

Higher interest rates in the US are expected to lead the FPIs (Foreign Portfolio Investors) away from emerging markets such as India.

"Investors are expecting the Chinese markets crash to deter the US Fed from going in for a rate hike in September. Yesterday, it was noticed that the US companies having exposure to the Chinese markets have been negatively impacted by the economic implosion happening there," Anand James, co-head, technical research, Geojit BNP Paribas, told IANS.

The continuous slide in the Chinese stock markets has by some estimates wiped-off 40-45 percent of entire stock value in the last 3 months. The benchmark index of the Chinese markets was down by 6 percent on Tuesday.

Investors are concerned over the fact that the efforts by the Chinese government, brokerage firms and mutual funds aren't able to arrest the fall in stock markets of the $10-trillion strong economy.

"The markets are also awaiting the minutes of the last FOMC meet held on July 28-19 to be released later today. We have also seen value buying in the stocks after two days of relentless falls," James said.

The barometer index fell by 236 points during the last two sessions on the back of widening monsoon deficit, stalled reforms, sinking rupee and lowering of growth rate by global credit agency Moody's.

Sector-wise, healthy buying was observed in healthcare, consumer durables and information technology (IT) stocks. However, banks, metals, realty and oil and gas sectors came under intense selling pressure.

The S&P BSE healthcare index augmented by 431.27 points, consumer durables index gained by 118.41 points and IT index rose by 115.22 points.

On the other hand, the S&P BSE banking index plunged by 120.68 points, metal index receded by 70.73 points, realty index declined by 12.84 points and oil and gas index lost 10.29 points.

Related Tags: HealthcareBSE Sensex
 

You May Like

   
 

More from business