Lower oil prices, strong rupee buoy equity indices

Mumbai, Dec 18 (IANS) Lower crude prices and a strong rupee aided key the equity indices to trim their early losses to end Tuesday's trade session in the green. Initially, the S&P BSE Sensex and NSE Nifty50 had a gap-down opening and traded in the red as investors choose to book profits. However, lower crude prices and a resurgent rupee triggered buying which pared losses and buoyed the market. The Brent crude traded at $57.80 a barrel around the time when markets closed. In terms of currency, the Indian rupee traded at 70.76 (at 3.30 p.m) per US dollar from its previous close of 71.55, gaining close to 80 paise. Sector-wise, financial stocks rose, whereas export-oriented IT and Tech shares ended over 1 per cent lower. Index-wise, the Sensex settled 77.01 points or 0.21 per cent higher at 36,347.08 points and the Nifty50 gained 20.35 points or 0.19 per cent to close at 10,908.70 points. "Crude oil prices fell over 2 per cent providing support to the rupee. In addition, investment has improved in India after weakness in the major global economies," Anuj Gupta, Deputy Vice President - Research, Commodities and Forex, Angel Broking, told IANS. In addition to profit booking, global markets were subdued as investors traded with caution ahead of the US Federal Open Market Committee's (FOMC) two-day meet starting on Tuesday. The committee is expected to raise interest rates which has kept the sentiments tepid, analysts said.
--IANS