The National Stock Exchange's Nifty closed a volatile session in the green taking cues from global peers. According to analysts, there has been some good news in terms of domestic data and positive economic indicators from the US which is supporting the market.
"It has been a week of relief for a lot of investors who have seen the pain of 2011. I do not think there is any evidence that the market seems to have bottomed out but at least there are some silver linings that are emerging out of the dark clouds. The food inflation has come down; IIP data is giving the sense of semblance and there's some semblance in the global stability. I feel there will be market specific cues, there are macroeconomic numbers for the markets to crunch. There is earning season to continuously watch into," said Devang Mehta, VP & Head Equities Sales, Anand Rathi Securities.
Meanwhile, stocks from broader markets continued to outperform the benchmarks as investors focused on stocks available at attractive valuations after a sharp correction in last two months.
"This is just the fall out of what really happened in November and December where there was excessive selling across the board. Lack of interest led to a lot of these stocks going down disproportionately. The impact cost for selling was extremely high and at the same time you have seen insider buying has accelerated in this space. There is lot of value in a number of these small caps and midcap names.
Having said that I think the breadth this week has been phenomenal in terms of the way the stocks have really participated. My sense is that as the earning season now progresses you may start seeing stock specific moves rather than these generic broad based moves going forward," said Shashank Khade, Executive Vice President-Portfolio Management Services, Kotak Securities to ET Now.
He added that there was a disconnection in terms of valuations between large and smallcap stocks and that gap was being bridged.
"The markets are now trying to correct the gap to some extent. Having said that the results and outlooks will be still quite important to see whether the valuation gap can get breached further as we go along," Khade added.
The Sensex ended at 16154.62, up 117.11 points or 0.73 per cent. The 30-share index touched intraday high 16257.34 and low of 16049.78 intraday.
The National Stock Exchange's Nifty closed at 4866, up 34.75 points or 0.72 per cent. It touched a high of 4898.85 and low of 4834.20 in trade today.
BSE Midcap Index was up 1.14 per cent and BSE Smallcap Index moved 1.44 per cent higher.
Amongst the sectoral indices, BSE Metal Index gained 3.21 per cent, BSE Capital Goods Index moved up 2.86 per cent and BSE Power Index moved 2.39 per cent higher. BSE Oil&gas Index was down 0.38 per cent and BSE IT Index slipped 0.04per cent.
Reliance Power (7.22%), Tata Steel (6.97%), Reliance Communications (6.34%), Coal India (5.02%), and NTPC (3.51%) were the major Nifty gainers.
Coal India has reached a "broad consensus" with labour unions to enhance workers' salaries by 25 per cent in the forthcoming National Coal Wage Agreement (NCWA)-IX.
GAIL (-3.27%), Bajaj Auto (-3.09%), Maruti Suzuki (-1.91%), HCL Tech (-1.79%) and Sun Pharmaceuticals (-1.73%) led the losers pack.
News bureau.
"It has been a week of relief for a lot of investors who have seen the pain of 2011. I do not think there is any evidence that the market seems to have bottomed out but at least there are some silver linings that are emerging out of the dark clouds. The food inflation has come down; IIP data is giving the sense of semblance and there's some semblance in the global stability. I feel there will be market specific cues, there are macroeconomic numbers for the markets to crunch. There is earning season to continuously watch into," said Devang Mehta, VP & Head Equities Sales, Anand Rathi Securities.
Meanwhile, stocks from broader markets continued to outperform the benchmarks as investors focused on stocks available at attractive valuations after a sharp correction in last two months.
"This is just the fall out of what really happened in November and December where there was excessive selling across the board. Lack of interest led to a lot of these stocks going down disproportionately. The impact cost for selling was extremely high and at the same time you have seen insider buying has accelerated in this space. There is lot of value in a number of these small caps and midcap names.
Having said that I think the breadth this week has been phenomenal in terms of the way the stocks have really participated. My sense is that as the earning season now progresses you may start seeing stock specific moves rather than these generic broad based moves going forward," said Shashank Khade, Executive Vice President-Portfolio Management Services, Kotak Securities to ET Now.
He added that there was a disconnection in terms of valuations between large and smallcap stocks and that gap was being bridged.
"The markets are now trying to correct the gap to some extent. Having said that the results and outlooks will be still quite important to see whether the valuation gap can get breached further as we go along," Khade added.
The Sensex ended at 16154.62, up 117.11 points or 0.73 per cent. The 30-share index touched intraday high 16257.34 and low of 16049.78 intraday.
The National Stock Exchange's Nifty closed at 4866, up 34.75 points or 0.72 per cent. It touched a high of 4898.85 and low of 4834.20 in trade today.
BSE Midcap Index was up 1.14 per cent and BSE Smallcap Index moved 1.44 per cent higher.
Amongst the sectoral indices, BSE Metal Index gained 3.21 per cent, BSE Capital Goods Index moved up 2.86 per cent and BSE Power Index moved 2.39 per cent higher. BSE Oil&gas Index was down 0.38 per cent and BSE IT Index slipped 0.04per cent.
Reliance Power (7.22%), Tata Steel (6.97%), Reliance Communications (6.34%), Coal India (5.02%), and NTPC (3.51%) were the major Nifty gainers.
Coal India has reached a "broad consensus" with labour unions to enhance workers' salaries by 25 per cent in the forthcoming National Coal Wage Agreement (NCWA)-IX.
GAIL (-3.27%), Bajaj Auto (-3.09%), Maruti Suzuki (-1.91%), HCL Tech (-1.79%) and Sun Pharmaceuticals (-1.73%) led the losers pack.
News bureau.
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