Global cues, bankruptcy code cheer markets, Sensex up 263 points

Positive global cues, coupled with the government's efforts to build consensus on the bankruptcy bill, cheered the Indian equity markets on Wednesday and led a barometer index to gain 263 points during the late-afternoon trade session.

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

Besides Asian markets, Tuesday's rally in the US stocks after a key macro-economic data indicated healthy growth in the world's largest economy cheered investors here.

In addition, government's efforts to build a consensus to pass the crucial bankruptcy bill restored investors' confidence.

Furthermore, the bill has been referred to a joint parliamentary committee which will iron out any differences on the legislation before the budget session which is slated for February.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was trading 263 points higher.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) made gains during the session under review. It was trading higher by 78.55 points or 1.01 percent at 7,864.65 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,697.66 points, was trading at 25,853.62 points (at 2.45 p.m.) -- up 262.97 points or 1.03 percent from the previous day's close at 25,590.65 points.

The Sensex has so far touched a high of 25,875.27 points and a low of 25,689.70 points during the intra-day trade.

The Sensex had closed the previous session on Tuesday, down 145.25 points or 0.56 percent, while the Nifty ended lower by 48.35 points or 0.62 percent.

"Positive close of the US markets on Tuesday arrested the falls in the Indian markets. Short-coverings were also observed," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

"The decisive action on the bankruptcy bill by sending it to a joint parliamentary committee added more legs to the morning's upward movement."

Nitasha Shankar, vice president for research with YES Securities pointed out that the Indian markets reversed again after a weak closing on Tuesday, and were currently trading in the positive territory.

"Volume continues to remain thin due to lack of participation; thin volumes could lead to volatile trading sessions. Moreover, headline indices continue to oscillate in a range and Nifty index is currently placed at the upper end of the range," Shankar told IANS.