Global cues, weaker dollar and crude oil price led third consecutive day of gains for the benchmark indices Sensex and Nifty-50. China’s Shanghai Composite Index gained 2.6 per cent as the Chinese government indicated that it will have more room to spend on infrastructure, triggering a rally in the metal stocks in the Indian market.
The Sensex crossed 40,000 mark touching an intra-day high of 40,066.31 and finally closed at 39,950.46 gaining 165.94 points or 0.42 per cent. The Nifty-50 too managed to cross 12,000 mark touching 12,000.35 and finally closed at 11,965.60 up 42.90 points or 0.36 per cent.
The broader market indices were mixed as BSE Mid-cap index gained 0.79 per cent while BSE Small-cap index gained 0.24 per cent.
The advance-decline ratio on BSE was in favour of losers with 1428 stocks declining and only 1131 stocks advancing.
Among the sectoral indices the BSE Metal Index was the top gainer at 1.33 per cent, other sectoral gainers included BSE Oil & Gas (0.91 per cent), Bankex (0.87per cent), Telecom (0.74 per cent) and IT (0.49 per cent). Only two sector closed in the red- BSE FMCG (-0.05 per cent) and Capital Goods (-0.05 per cent).
Among the top gainers on the Sensex were Tata Motors (2.71 per cent), ONGC (2.58 per cent), Yes Bank (2.50 per cent), IndusInd Bank (2.39 per cent), Vedanta (2.30 per cent), HCL Technologies (1.43 per cent).
Foreign portfolio were net buyers of equities worth Rs 95.79 crore while the domestic institutions were net buyers by Rs 151.01 crore.
The rupee closed 21 paise stronger at 69.44 per the dollar while Brent crude traded at $62.42 per barrel.
Nagaraj Shetti—Technical Research Analyst, HDFC Securities said, "The choppy trend continued in the market, this pattern signals a weak strength in the upside bounce. Though, Nifty moved up today the market breadth was not in favour of bulls.
The short-term trend of Nifty is positive with range-bound movement. This weak’s upside bounce is not going to stay for long and one may expect higher levels weakness soon in the market. Immediate resistance to be watched is at 12,000 levels."
Sneha Seth, Derivatives analyst, Angel Broking said, “Considering Monday’s development in index options, we maintain our optimistic stance on market and soon expect a rally beyond the immediate hurdle of 12000-12040. On the downside we believe 11850-11900 shall act as a strong support now.”
Jayant Manglik, President—Retail Distribution, Religare Broking said, “The Indian equity indices continued their upward trend amidst positive global cues. In the near term, we continue to be cautious on the markets and expect consolidation. Macro-economic data (Inflation and IIP) scheduled this week will be crucial for market movement as RBI recently raised its inflation range and indicated towards concern on industrial growth. In addition, global indicators (crude oil prices and currency movement) will also be on investors radar.”