Buying support, global cues buoy indices; telecom stocks rise

MUMBAI: Healthy buying activity continued to support equity markets' northward trajectory during the post-noon session on Thursday. Globally, Asian shares held onto this week's gains, however, uncertainty about Chinese policy made investors nervous.

Consequently, the two key indices - S&P BSE Sensex and NSE Nifty50 - touched new intra-day record highs before ceding some of their gains. The Sensex touched a new high of 54,604.2 points and the Nifty50 hit a record 16,327.1 points. Amongst sectors, Telecom index gained the most while Realty was the main loser. The Sensex at around 12.55 a.m. traded at 54,637.40, higher by 267.63 points or 0.49 per cent from its previous close.

The Nifty50 traded at 16,322.95, higher by 64.15 points or 0.39 per cent from its previous close.

"Nifty opened flat on Aug 5 and has remained range-bound in the morning session," said Deepak Jasani- Head of Retail Research at HDFC Securities. "Broader market sell-off continues as is reflected in the sharply negative advance decline ratio."

According to Likhita Chepa, Senior Research Analsyst at CapitalVia Global Research: "Sentiments in the domestic market are still intact and poised towards positive strength in the market. Early support came from the PHDCCI, which asked for a three-tiered GST rate structure, with the highest slab at 18 per cent, to stimulate consumption and reduce evasion."

"We have witnessed the 16,200 to be a good support level in the short term and 16,000 will act as a major support level, sustaining above 16,200, we expect the market to gain momentum, leading to an upside projection till 16450-16500 level." (IANS)

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