Buying support pushes equities higher; oil stocks rise

Mumbai, Sep 21 Rising services exports and buying support lifted India's key stock indices during the mid-afternoon trade session on Tuesday.

Accordingly, both key indices -- S&P BSE Sensex and NSE Nifty50 -- rose a day after a sell-off which was triggered due to weak Asian cues.

As per market observers, the up moves comes on the back of healthy buying support for Realty, Oil & gas, IT and FMCG stocks.

Sector wise, Auto, Consumer Durables and Utilities indices traded lower.

At around 1.30 p.m., S&P BSE Sensex traded at 58,718.40 points, higher by 227.47 points or 0.39 per cent from its previous close.

Similarly, NSE Nifty50 traded higher. It rose to 17,424.30 points, higher by 75 points or 0.43 per cent from its previous close.

"Traders were getting support, as Reserve Bank of India (RBI) in its latest survey has showed that exports of software services, including services delivered by foreign affiliates of Indian companies, recorded 2.1 per cent growth," said Gaurav Garg, Head of Research, CapitalVia Global Research: "

According to Deepak Jasani, Head of Retail Research, HDFC Securities: "China's Evergrande default risk continues to impact sentiments in the global markets. The US Fed is due to deliver its latest economic and interest rate policy update on Wednesday."

"Though the Nifty in the morning briefly breached the low of Monday, it has come up above it later in the afternoon. 17,326-17,362 support band in Nifty could be tracked closely for hints of further weakness in the markets."

In addition, Chandan Taparia, Technical and Derivatives Analyst, MOFSL said: "Nifty and Bank Nifty is consolidating and a tug of war can be seen. Traders are advised to apply caution moving ahead."

"At current juncture, we are witnessing good momentum in consumption, IT and selective private banks space and one can look for buying opportunity in counters like Pidilite, HUL, Kotak Bank and LTTS."