Indian equities shrugged off the weak sentiment witnessed during the last couple of days and climbed higher on September 8, after oil prices fell in the international market. Technology and bank stocks led the rally and were among the top gainers.
The NSE Nifty 50 index was up 0.84 percent or 149 points at 17,773, while the S&P BSE Sensex rose 0.92 percent or 540 points to 59,570.
Among the Nifty 50 stocks, oil marketer BPCL was the biggest gainer rising nearly 3 percent., followed by M&M, ICICI Bank, Bharti Airtel, Shree Cements, Asian Paints and Tech Mahindra. On the other hand, SBI Life, Coal India and Hindalco were among a few losers of the day.
“Falling crude oil has come as a relief given the country's dependence on oil imports. Bargain hunting and value buying is likely to be the preferred theme as the benchmark Nifty braces for a massive technical break-out on the upside,” said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities.
Here are key factors driving markets today:
Oil prices recovered slightly from an overnight plunge but remained below $90 a barrel for the first time since early February. US crude ticked up 0.81 percent to $82.60 a barrel, while Brent crude rose 0.65 to $88.57 per barrel.Global markets
Asian stocks made broad gains extending an overnight global rally. Japan's Nikkei share average jumped 1.96 percent in early trading. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.33 percent, while Australia's S&P/ASX 200 gained 0.72 percent.
All three major Wall Street indices made significant gains overnight as well, setting the tone for domestic markets.Technical outlook
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, said Nifty continues to trade with a medium term positive bias and buying on dips with high volatility.
“Current trend support is seen at 17,000 and resistance placed at 18,000/18,100. Short term momentum remains positive despite multiple bearish attempts. Most heavy weight stocks are trading in uptrend and away from the buying zone. Limited opportunities available to go fresh aggressively long. Pharma and energy stocks look attractive,” he said.FII buying
Foreign investors have continued to be net buyers in the Indian market. On September 7, foreign institutional investors (FIIs) net bought shares worth Rs 758.37 crore. This was even when domestic institutional investors (DIIs) net sold shares worth Rs 138.67 crore.
FII buying, which is a stark change from a couple of months back when they were selling, has been a key driving factor in the recent rally in Indian stocks, their outperformance over other emerging markets.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.