“FII inflows have been steady in the markets. However, certain counters appear overbought and valuations seem to be running ahead of the fundamentals, “ said Raj Majumder, CEO, iMetanoia Financial Services.

While realty and banking stocks rose, auto and metal stocks declined in today’s trade. The BSE realty index gained 3.3 per cent. DLF jumped 6.3 per cent to Rs 460. Parsvnath Developers, Ackruti City and HDIL surged over 4 per cent each.

The banking index on the BSE was up 2.3 per cent. Karnataka Bank soared 9.2 per cent and IndusInd Bank advanced 7.4 per cent.

The BSE auto index fell 1.2 per cent and the metal index was down 1.1 per cent. In the auto space, Bajaj Auto shed 4.8 per cent and Escorts lost 3.9 per cent.

In the 30-share Sensex pack, 15 stocks rose while the remaining declined. DLF was the biggest gainer followed by SBI, JP Associates and Tata Power. SBI gained 5.3 per cent to close at Rs 2,453. JP Associates and Tata Power were up over 3 per cent each.

Sterlite Ind, M&M and Tata Steel were the major losers in the group. Sterlite Ind dropped 5.4 per cent to Rs 820. The company today said it will raise $500 million (over Rs 2,300 crore) from the American market to part finance expansion of copper business and business acquisitions.

M&M was down 2.3 per cent and Tata Steel shed 1.4 per cent.

Asian stock markets were mixed on Friday while European markets gained in early trading.

Movements in Asia were mostly muted, with Japan's benchmark Nikkei 225 stock average rising 0.2 per cent to close at 10,257.56. China's Shanghai index fell 0.1 per cent and Singapore's market also shed 0.1 per cent. Among other losing bourses was Hong Kong where the Hang Seng index fell 69.18, or 0.3 per cent, to close at 21,929.80. South Korea's Kospi dropped 1.1 per cent and Australia's benchmark fell 0.5 percent.

In New York on Thursday, the Dow rose 47.08, or 0.5 per cent, to 10,062.94, its highest close since October 3 last year and second straight finish above 10,000.