Equity markets soar on positive global cues

Mumbai: Indian equity markets surged on the back of positive global cues during the mid-afternoon trade session on Thursday.

Both the key indices gained more than half a per cent each as healthy buying was witnessed in banking, automobile, and oil and gas stocks.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 66.15 points or 0.75 per cent, to 8,843.30 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,766.94 points, traded at 28,712.59 points (at 1 p.m.) -- up 205.17 points or 0.72 per cent from the previous close at 28,507.42 points. 

The Sensex has so far touched a high of 28,871.92 points and a low of 28,693.07 points during the intra-day trade. 

The BSE market breadth was tilted in favour of the bulls -- with 1,541 advances and 1,002 declines.

On Wednesday, the benchmark indices had closed flat as the initial gains were pared by a last hour bout of profit booking.

The barometer index had slipped by 15.78 points or 0.06 per cent. In contrast, the NSE Nifty had inched up by 1.25 points or 0.01 per cent.

Initially on Thursday, the benchmark indices opened in the green following positive global cues.

Investors' sentiments were buoyed on the US Federal Reserve's decision to keep its key interest rates unchanged for September.

Moreover, domestic cues such as the proposal to merge the general and railway budget, along with consultations to advance the budget presentation date, gave a positive momentum to the equity markets.

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty traded firm tracking positive global cues.

"Bearish USD/INR futures prices also supported the firm sentiments in the Indian equity markets in the intraday session. IT stocks faced selling pressure due to lower USD/INR futures prices," Desai said.

"Some auto stocks faced profit booking at higher levels. Aviation and power stocks traded firm on buying support."