Indian equities cheer cabinet decisions, banking stocks zoom

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Indian equities cheer cabinet decisions, banking stocks zoom

Mumbai, May 4 (IANS) Indian equity markets cheered the decisions of the Cabinet Committee on Economic Affairs and traded on a buoyant note during the mid-afternoon trade session on Thursday, with a key index again crossing the 30,000 points mark.

Banking stocks witnessed a surge of around 500 points or two per cent after the cabinet, at a meeting chaired by Prime Minister Narendra Modi on Wednesday night, approved an ordinance to amend the Banking Regulation Act to tackle the mounting non-performing assets (NPAs) of public sector banks.

Investors’ sentiments got a filip after the cabinet approved the National Steel Policy, 2017, along with other major decisions.

According to market observers, the US Federal Reserve’s decision to keep key interest rates unchanged also boosted investors’ sentiments.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE reclaimed its psychologically important 30,000-mark.

The Sensex, which opened at 30,069.72 points, traded at 30,066.15 points (at 1.00 p.m.) — up 171.35 points or 0.57 per cent from its previous close at 29,894.80 points.

The Sensex has so far touched a high of 30,098.82 points and a low of 30,007.40 points during the intra-day trade.

The BSE market breadth favoured was bullish — with 1,374 advances and 1,287 declines.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 26.85 points or 0.29 per cent to 9,338.80 points.

“The equity benchmark indices started off the day on a firm note despite of mixed global cues, thanks to gains in banking stocks after the cabinet on Wednesday approved a new policy to deal with non-performing assets (NPAs),” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

“The domestic equities also got a boost after the US Federal Reserve kept its policy rate unchanged in its two-day policy review. Negative opening in USD/INR futures too supported the firm opening of benchmark indices.”

On Wednesday, the benchmark indices closed on a flat-to-negative note on the back of negative global cues, coupled with outflow of foreign funds and heavy selling pressure in healthcare, oil and gas, and banking stocks.

The NSE Nifty inched down by 1.85 points or 0.02 per cent to close at 9,311.95 points, while the BSE Sensex closed at 29,894.80 points — down 26.38 points or 0.09 per cent.

This is published unedited from the IANS feed.