The announcement of a share buy-back by an IT major, along with broadly positive global cues and healthy buying support in the banking sector led the key Indian equities indices on Tuesday to touch their new closing highs of 2017.The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 28.65 points or 0.32 per cent to 8,907.85 points.The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,716.70 points, closed at 28,761.59 points -- up 100.01 points or 0.35 per cent, from the previous close at 28,661.58 points.The Sensex touched a high of 28,801.00 points and a low of 28,597.33 points during the intra-day trade.The BSE market breadth was tilted in favour of the bulls -- with 1,552 advances and 1,271 declines.In terms of broader markets, the BSE mid-cap index rose by 0.52 per cent, while the small-cap index was up by 0.46 per cent.On Monday, the benchmark indices made gains on expectations of a share buy-back offer from IT major TCS and a strong rupee.The NSE Nifty rose by 57.50 points or 0.65 per cent to close at 8,879.20 points, and the BSE Sensex was up 192.83 points or 0.68 per cent at 28,661.58 points."Markets surged higher on Tuesday after a weak morning session and made fresh near term high," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.
"Major Asian markets ended on a mixed note, while European indices like DAX and CAC 40 traded higher."However, caution prevailed ahead of the release of the minutes of the US Fed's FOMC (Federal Open Market Committee) and the Reserve Bank of India's Monetary Policy Committee, as well as derivatives expiry.The RBI minutes of its last monetary policy review are expected to be released on Wednesday, while the derivatives expiry will take place on Thursday, February 23.Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, said: "With India VIX (Volatility Index), an indicator of volatility easing, investors were encouraged to push higher, shrugging off the indecisiveness that has crept in ahead of RBI-FOMC minutes.""Even though the buy-back candidates in the IT sector cooled off, potential M&A (mergers and acquisitions) activity in the banking space and easing of foreign direct investment (FDI) rules in state run banks, lent positivity," James added.
In terms of investments, the provisional data with exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 1,435.76 crore, whereas the domestic institutional investors (DIIs) purchased scrip worth Rs 1,535.44 crore.Commenting on the sector-specific movement, Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: "IT and banking sector stocks witnessed good recovery from lower levels in the second half of the session.""Pharma, textile, aviation and media-entertainment sector stocks traded with firm sentiments, while auto, oil-gas, FMCG, cement and power sector stocks traded with mixed sentiments due to profit booking."Sector-wise, the S&P BSE consumer durables index augmented by 330.53 points, followed by the banking index, which surged by 227.75 points, and the oil and gas index, which increased by 109.21 points.On the other hand, the S&P BSE telecom index slipped by 30.77 points, the Teck (technology, media and entertainment) index fell by 29.47 points, and the IT index was down 17.32 points.Major Sensex gainers on Tuesday were: Axis Bank, up 4.99 per cent at Rs 504.60; Asian Paints, up 1.61 per cent at Rs 991.15; Reliance Industries, up 1.36 per cent at Rs 1,088.25; HDFC, up 1.27 per cent at Rs 1,411.95; and Adani Ports, up 1.18 per cent at Rs 304.05.Major Sensex losers were: Bharti Airtel, down 3.38 per cent at Rs 362.95; Tata Consultancy Services (TCS), down 1.68 per cent at Rs 2,464.30; ITC, down 0.94 per cent at Rs 263.35; Sun Pharma, down 0.93 per cent at Rs 673.25; and Maruti Suzuki, down 0.48 per cent at Rs 6,062.70.