Mumbai: Healthy macro-economic data buoyed the Indian equity markets on Wednesday.
This led the key indices to trade in the positive territory during the late-afternoon session.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) edged up by 24.65 points or 0.30 per cent, at 8,184.75 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,684.46 points, traded at 26,748.38 points (at 2.45 p.m.) — up 80.42 points or 0.30 per cent from the previous close at 26,667.96 points.
The Sensex has so far touched a high of 26,857.25 points and a low of 26,671.86 points during the intra-day trade.
In contrast, the BSE market breadth was marginally tilted in favour of the bears — with 1,284 declines and 1,277 advances.
The key indices on Tuesday had closed flat — marginally in the red — led by profit booking.
The barometer index had edged down by 57.64 points or 0.22 per cent, while the NSE Nifty had slipped by 18.40 points or 0.22 per cent.
Initially on Wednesday, the key indices opened on a higher note, following the release of healthy domestic macro-economic data.
Major domestic macro-economic data points like the fourth quarter GDP (gross domestic product), fiscal deficit and eight core industries (ECI) were released on Tuesday.
The GDP data showed that the Indian economy expanded by 7.6 per cent in 2015-16 to log the fastest growth among larger countries.
Besides, India’s core industrial output data, ECI edged up by 8.5 per cent in April on the back of higher production of electricity, steel and refinery products.
Despite the positive opening, the key indices ceded some of their initial gains on the back of sluggish Asian markets and lower close of the US stocks on Tuesday.
The US indices had closed lower on the back of disappointing consumer confidence data which stroked growth concerns in the world’s largest economy.
The US data also cast a doubt over the economy’s ability to withstand a speculated interest rate hike in June.
In addition, lower crude oil prices, a weak rupee and profit booking dented investors’ risk taking appetite.
However, lower level value buying supported prices.
“Nifty opened firm tracking positive GDP data published yesterday but failed to sustain at higher levels due to appreciation in USD/INR prices,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Volatile trend likely to continue for the day on fluctuation in USD/INR prices.”
Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services pointed out that investors were seen reluctant to chase higher prices due to negative global cues.
“Gains were capped due to caution ahead of the release of major global macro-economic data points and sluggish global markets on the back of disappointing US consumer confidence data,” James said.
“However, the equity markets were able to pare some of their losses on the back of value buying at lower levels.”