Buying value, easing oil prices drive stocks up; metal stocks increase
Bombay, 8 Feb. (IANS) Value buying triggered after three consecutive sessions of falls lifted India’s main benchmark stock indices – S&P BSE Sensex and NSE Nifty50 – slightly into the green on Tuesday.
In addition, oil prices fell after hitting $94 a barrel after the first talks between the United States and Iran on the nuclear deal. However, the day’s session was marked by volatility as FIIs continued to sell.
The FIIs pumped Rs 1,967.89 crore from BSE, NSE and MSEI into the capital market segment. Globally, Asian stocks reversed early gains on Tuesday but were still largely in the green as Chinese equity investors were unsettled by U.S. moves against 33 Chinese entities. .
European stocks extended their gains on Tuesday, after the head of the European Central Bank eased concerns about a faster monetary policy tightening this year.
On the home front, NSE volumes were above the recent average. Among the sectors, metals led the pack of winners while the energy and capital goods indices fell the most.
Consequently, the Sensex gained 0.33% or 187.39 points to 57,808.58 points, while Nifty rose 0.31% or 53.15 points to 17,266.75 points.
“Institutional selling appeared to have declined, particularly in large caps, and as a result benchmarks recovered from intraday lows,” said Deepak Jasani, head of retail research, HDFC Securities.
“However, the broader markets still remain under selling pressure. Should large caps continue their rally, then even the broader market may soon bottom out.”
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “The markets are experiencing increasing volatility due to various global and national factors.”
“After 3 days of decline, Nifty has seen some recovery from 17,000 odd levels – which continues to act as an important support level for the market.”
Additionally, Vinod Nair, Head of Research at Geojit Financial Services, said, “Indian stocks were very volatile today, swinging between gains and losses while still managing to close on a positive note. Selling pressure from FIIs has been countered by bargain hunting by domestic investors.
“European equities rose on comments from the ECB President that there is less chance of a measurable tightening of monetary policy, which helped reassure global investors.”