Likely government support measures, PLI schemes buoy equities

MUMBAI: Hopes of government support measures for some beleaguered sectors along with provisions for PLI schemes for others buoyed India's key stock indices during mid-afternoon trade session on Wednesday.

However, gains were capped due to negative Asian cues. Initially, both key indices — S&P BSE Sensex and NSE Nifty50 — had a gap-up opening.

Among sectors, Power, IT, Oil & Gas, Consumer Durables, Utilities and Telecom were the main gainers. At 2.30 p.m., S&P BSE Sensex traded at 58,739.91 points, higher by 492.82 points or 0.85 per cent from its previous close. Similarly, NSE Nifty50 traded lower. It rose to 17,522.10 points, higher by 142.10 points or 0.82 per cent from its previous close.

"Indian equity benchmarks maintaining their gaining rally traded around level of 17,520, as additional support came in with private report that India remains an attractive destination for foreign direct investment (FDI) on account of healthy prospects of economic growth and its skilled workforce," said Gaurav Garg, Head of Research, CapitalVia Global Research.

"On the sectoral front telecom stocks were buzzing as Union Cabinet given relief to companies to pay their spectrum dues."

According to Chandan Taparia, Technical and Derivatives Analyst, MOFSL: "Bulls are in charge of the market despite slight consolidation. Volatility is slightly on the higher side and needs to cool below 13 zones." "Overall trend is positive and it can move towards 17,500 and 17,777 levels whereas support inches higher to 17,300 then 17,150 zones. Market breadth continues to be in favour of the advancing counters which indicates buying across the street." (IANS)

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