Mumbai: The 50-share NSE Nifty closed above the 5400 mark on Thursday, for the first time since August 3, 2011. It was completely lacklustre since the opening trade today, but it strengthened quite nicely in late trade with support from banks, technology and metals stocks. The market managed to cross this psychologically important level after seeing consolidation in a range of 5,320-5,400 this week.
The BSE benchmark rose 123.43 points or 0.7 per cent, to close at 17,830.75 and the NSE benchmark gained 44.20 points at 5,412.35. The benchmarks rallied more than 19 per cent since December (2011) lows, a rally led by foreign money. Foreign institutional investors pumped in more than Rs 18,000 crore in Indian equities since January 2012.
However, experts are cautious on the market, after such a one way rally. They expect serious correction in the near-term.
Dilip Bhat of Prabhudas Lilladher said he would lean more towards caution at the current rates. "I still maintain that markets will correct and probably there could be serious correction even in the longer run," he added.
Among sectoral indices - the BSE Metal, Realty, Bank and Auto indices gained around 2 per cent; IT and Power were up over 1 per cent.
Shares of Sterlite Industries topped the buying list, rising 4.6 per cent and Jindal Steel jumped nearly 4 per cent. However, Hindalco closed 1 per cent lower, though it recovered sharply from day's low post third quarter numbers (stock was down 7 per cent before results).
Among banks, ICICI Bank and HDFC Bank climbed 2-2.8 per cent while SBI gained just 0.3 per cent. Technology majors Infosys and TCS moved up 1.4 per cent & 0.7 per cent, respectively; Wipro rose over 2 per cent.
Auto stocks like Tata Motors, Bajaj Auto and M&M rallied 2-3 per cent. Power stocks too charged up - Reliance Power surged 5 per cent and Tata Power went up over 3 per cent; NTPC gained 1.6 per cent.
However, major largecaps like Reliance Industries, ITC, L&T, Bharti and ONGC were down 0.5-1 per cent.
The broader indices outperformed benchmarks - the BSE Midcap and Smallcap indices advanced over 1 per cent. Advancing shares outnumbered declining by 1840 to 1039 on the BSE.
In the second line shares, Puravankara Project, HCC, Hotel Leela and Jubilant Foodworks shot up 9-13 per cent. Smallcaps like Gati and Dhanlaxmi Bank rallied over 17 per cent.
However, Manappuram Finance and Muthoot Finance tumbled around 6 per cent after sources claimed that RBI is considering rules to regulate the gold loan segment.
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