The Bombay Stock Exchange's Sensex extended its winning streak for second straight session led by gains in power, capital goods and realty space.
The market is likely to remain rangebound and take cues from corporate earnings and the Reserve Bank of India's policy review meet for direction, say analysts.
"The markets have factored in most of the negative news which emanated from the budget and that correction phase is done for now. Markets are looking a little bit hesitant at this point of time because they do not have a clear cut direction any side.
That direction would come from the quarterly numbers which would give a clear indication as to where we are heading in terms of growth, margin pressure and other things.
Markets are going to be in a slightly uncertain and range bound situation for the next couple of weeks. They are going to be driven to certain extent by international news flows," said Sethuram Iyer, Chief Investment Officer, Daiwa Asset Management.
The benchmarks opened on positive note taking support of better than expected PMI data from China.
Trade turned choppy as back home, manufacturing sector grew at the slowest pace three months in March. The HSBC India Manufacturing Purchasing Managers' Index eased to 54.7 in March from 56.6 in February.
"The deceleration in growth coupled with the moderation in inflation bodes well for the RBI beginning its easing cycle at its policy on April 17. Supporting this is the short window available due to the interplay of commodity prices and currencies.
The outlook for policy rates post easing of 50bps would be data/event dependent including: oil prices, and risks to the proposed path to fiscal consolidation for FY13," said Rohini Malkani, Economist, Citi India.
Indices hit intraday highs later in the day on the back of positive opening of European markets but weak eurozone economic data spooked sentiments. The eurozone unemployment rate hit a 15-year record high of 10.8 percent in February against 10.7 a month ago. Eurozone's manufacturing activity dropped to a three-month low in March.
The Sensex closed at 17478.15, up 73.95 points or 0.42 per cent. It touched intraday high of 17529.98 and low of 17382.38.
The National Stock Exchange's Nifty ended at 5317.90, up 22.35 points or 0.42 per cent. The broader index touched a high of 5331.55 and low of 5278.80 in trade today.
"Today's choppiness was just part of consolidation and indices should pick up momentum. 5280 now becomes kind of a trailing stop loss and market should move closer to 5420 to about 5450, it is a clear upswing.
The range is quite clear 5170-5200 to about 5600. Slowly we are moving towards those areas and everything which got beaten up in the correction are now likely to participate with more gusto," said Ashwani Gujral, Fund Manager, Ashwanigujral.com.
BSE Midcap Index up 1.08 per cent and BSE Smallcap Index moved 1.68 per cent higher.
Amongst the sectoral indices, BSE Power Index was up 1.89 per cent, BSE Capital Goods Index gained 1.74 per cent and BSE Realty Index moved 1.59 per cent higher. BSE Oil&gas Index slipped 0.28 per cent and BSE Metal Index was down 0.27 per cent.
DLF (2.88%), NTPC (2.74%), Tata Consultancy Services (2.01%), Larsen & Toubro (1.96%) and Mahindra & Mahindra (1.66%) were the major Sensex gainers.
Mahindra & Mahindra reported record monthly sales of passenger vehicles at 23,020 units, an increase of 33% over March 2011.
Bajaj Auto (-1.45%), Hindalco Industries (-1.39%), Sterlite Industries (-1.26%), Reliance Industries (-1%) and Hindustan Unilever (-0.98%) were the major losers.
News bureau,
The market is likely to remain rangebound and take cues from corporate earnings and the Reserve Bank of India's policy review meet for direction, say analysts.
"The markets have factored in most of the negative news which emanated from the budget and that correction phase is done for now. Markets are looking a little bit hesitant at this point of time because they do not have a clear cut direction any side.
That direction would come from the quarterly numbers which would give a clear indication as to where we are heading in terms of growth, margin pressure and other things.
Markets are going to be in a slightly uncertain and range bound situation for the next couple of weeks. They are going to be driven to certain extent by international news flows," said Sethuram Iyer, Chief Investment Officer, Daiwa Asset Management.
The benchmarks opened on positive note taking support of better than expected PMI data from China.
Trade turned choppy as back home, manufacturing sector grew at the slowest pace three months in March. The HSBC India Manufacturing Purchasing Managers' Index eased to 54.7 in March from 56.6 in February.
"The deceleration in growth coupled with the moderation in inflation bodes well for the RBI beginning its easing cycle at its policy on April 17. Supporting this is the short window available due to the interplay of commodity prices and currencies.
The outlook for policy rates post easing of 50bps would be data/event dependent including: oil prices, and risks to the proposed path to fiscal consolidation for FY13," said Rohini Malkani, Economist, Citi India.
Indices hit intraday highs later in the day on the back of positive opening of European markets but weak eurozone economic data spooked sentiments. The eurozone unemployment rate hit a 15-year record high of 10.8 percent in February against 10.7 a month ago. Eurozone's manufacturing activity dropped to a three-month low in March.
The Sensex closed at 17478.15, up 73.95 points or 0.42 per cent. It touched intraday high of 17529.98 and low of 17382.38.
The National Stock Exchange's Nifty ended at 5317.90, up 22.35 points or 0.42 per cent. The broader index touched a high of 5331.55 and low of 5278.80 in trade today.
"Today's choppiness was just part of consolidation and indices should pick up momentum. 5280 now becomes kind of a trailing stop loss and market should move closer to 5420 to about 5450, it is a clear upswing.
The range is quite clear 5170-5200 to about 5600. Slowly we are moving towards those areas and everything which got beaten up in the correction are now likely to participate with more gusto," said Ashwani Gujral, Fund Manager, Ashwanigujral.com.
BSE Midcap Index up 1.08 per cent and BSE Smallcap Index moved 1.68 per cent higher.
Amongst the sectoral indices, BSE Power Index was up 1.89 per cent, BSE Capital Goods Index gained 1.74 per cent and BSE Realty Index moved 1.59 per cent higher. BSE Oil&gas Index slipped 0.28 per cent and BSE Metal Index was down 0.27 per cent.
DLF (2.88%), NTPC (2.74%), Tata Consultancy Services (2.01%), Larsen & Toubro (1.96%) and Mahindra & Mahindra (1.66%) were the major Sensex gainers.
Mahindra & Mahindra reported record monthly sales of passenger vehicles at 23,020 units, an increase of 33% over March 2011.
Bajaj Auto (-1.45%), Hindalco Industries (-1.39%), Sterlite Industries (-1.26%), Reliance Industries (-1%) and Hindustan Unilever (-0.98%) were the major losers.
News bureau,
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