Value Buying Propels Markets, Sensex Up 174 Points

Apart from factoring in a US rate hike, markets rose on the back of value buying and increase in investor-participation.

Published: 16th December 2015 04:14 PM  |   Last Updated: 16th December 2015 04:15 PM   |  A+A-


MUMBAI: Despite concerns over a likely US rate hike, value buying and increase in investors' participation propelled a barometer index of the Indian equity markets to provisionally close with gains of 174 points on Wednesday.

Initially, too, both the bellwether indices of the Indian equity markets opened on a positive note in sync with their Asian peers.

In addition, investors seem to have priced-in the possibility of a 25 basis points hike in key US interest rates. The hike is expected to be announced by the US Fed's Federal Open Market Committee (FOMC) early Thursday, India time.

A hike in US interest rates, which have been at near-zero levels since the last decade, will lead to a massive pull-back of foreign funds from emerging economies like India.

It is also expected to dent business margins as access to capital from the US will become costlier.

However, foreign institutional investors (FIIs) were net buyers on Tuesday.

According to data with stock exchanges, FIIs bought stocks worth Rs.48.67 crore.

Apart from factoring in a US rate hike, markets rose on the back of value buying and increase in investor-participation.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) provisionally closed the day's trade up 174 points.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) gained during the day's trade. It was higher by 51.05 points or 0.66 percent at 7,751.95 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,402.47 points, provisionally closed at 25,494.37 points (at 3.30 p.m.) -- up 173.93 points or 0.69 percent from the previous day's close at 25,320.44 points.

The Sensex touched a high of 25,572.90 points and a low of 25,372.47 points during the intra-day trade.

On Tuesday, the Sensex gained by 170.09 points or 0.68 percent, while the Nifty rose by 50.85 points or 0.66 percent.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp