Short-covering on global cues pushes markets higher (Third Lead)

Mumbai, Jan 25 (IANS) Positive Asian indices, coupled with firm crude oil prices and a stable rupee, supported the upward movement of the Indian equity markets on Monday.

Consequently, a barometer index of the Indian equity markets provisionally closed the day’s trade 52 points up.
Initially, both the bellwether indices opened on a positive note in sync with their Asian peers. Even the firm closing of the domestic and the US markets last week supported the upward trajectory.
The short-covering rally was supported by firm oil prices and a stable rupee. Rupee gained eight paise at the opening. It started the week at 67.55 to a US dollar from its previous close of 67.63 to a greenback.
Expectations of an additional stimulus from the ECB (European Central Bank) by March this year also boosted investors’ confidence.
However, gains were capped by profit bookings and caution over the upcoming rate setting meeting of the FOMC (Federal Open Market Committee) scheduled for January 27-28.
The FOMC assumes significance as higher interest rates in the US are expected to lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India.
In addition, selling pressure was witnessed on account of the F&O (Futures and Options) expiry slated for Thursday.
The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) gained 52 points or 0.21 percent.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day’s trade flat. It inched up by 12.35 points or 0.17 percent to 7,434.80 points.
The S&P BSE Sensex, which opened at 24,540.97 points, provisionally closed at 24,488.04 points (3.30 p.m.), up 52.38 points or 0.21 percent from the previous day’s close at 24,435.66 points.
The Sensex touched a high of 24,650.57 points and a low of 24,433.67 points during the intra-day trade.
The S&P BSE market breadth favoured the bulls with an advance decline ratio of nearly 2:1. There were 1,729 advances and 930 declines.