The BSE Sensex rallied for the fourth straight Friday rising 183 points or 1 per cent to end at 18,763. The broader Nifty ended above the 5,700 mark for the first time since July 7, 2011. The rupee also rallied rising to a five-month high against the dollar.
The strong gains came on the back of positive global cues and the government's decision to stick to its planned borrowing target for the year. On Thursday, the government said it will not borrow more via bonds underlining its will to curb fiscal deficit and avoid a credit ratings downgrade.
Analysts turned positive in their outlook. Shardul Kulkarni of Angel Broking said any dips to 5,600 should be used to buy stocks.
"The bias is likely to be up... We can't rule out 6,000 on the Nifty by Diwali," Rajesh Baheti, MD of Crosseas Capital Services said.
Barring realty stocks, which saw profit booking, all other groups of stocks gained on the BSE. Metals, power, auto, consumer durables, FMCG, and healthcare stocks closed with 1-2 per cent gains.
On the Nifty, 37 of the 50 stocks ended with gains. Aluminium maker Hindalco was the top gainer, up 3.6 per cent. State-run Power Grid advanced 3.2 per cent. Commercial vehicles maker Tata Motors, drug maker Sun Pharma, and PSU lender Bank of Baroda witnessed 2.5-3 per cent gains on the Nifty.
Reliance Infra was the top loser, falling 1.4 per cent. Realty major DLF, state-run IDFC, and IT major HCL Tech ended with over 1 per cent losses, mainly on account of profit booking.
Among other stocks, Kingfisher Airlines was locked down after falling 5 per cent after promoter Vijay Mallya said that the United Breweries Group will be not use proceeds from a possible stake sale in United Spirits to infuse funds into the debt laden carrier. Other UB group stocks also closed lower today.
The market breadth was positive with over 65 per cent stocks rising on the broader BSE 500.
The Sensex had surged nearly 300 points in early trade, but markets closed off the day's high tracking weakness in European stocks, which slipped into the red after a positive start. Asian shares saw gains on hope that economic reform and budget plans unveiled by Spain will help the debt-saddled nation manage its debt imbalances.
(With inputs from Thomson Reuters)
The strong gains came on the back of positive global cues and the government's decision to stick to its planned borrowing target for the year. On Thursday, the government said it will not borrow more via bonds underlining its will to curb fiscal deficit and avoid a credit ratings downgrade.
Analysts turned positive in their outlook. Shardul Kulkarni of Angel Broking said any dips to 5,600 should be used to buy stocks.
"The bias is likely to be up... We can't rule out 6,000 on the Nifty by Diwali," Rajesh Baheti, MD of Crosseas Capital Services said.
Barring realty stocks, which saw profit booking, all other groups of stocks gained on the BSE. Metals, power, auto, consumer durables, FMCG, and healthcare stocks closed with 1-2 per cent gains.
On the Nifty, 37 of the 50 stocks ended with gains. Aluminium maker Hindalco was the top gainer, up 3.6 per cent. State-run Power Grid advanced 3.2 per cent. Commercial vehicles maker Tata Motors, drug maker Sun Pharma, and PSU lender Bank of Baroda witnessed 2.5-3 per cent gains on the Nifty.
Reliance Infra was the top loser, falling 1.4 per cent. Realty major DLF, state-run IDFC, and IT major HCL Tech ended with over 1 per cent losses, mainly on account of profit booking.
Among other stocks, Kingfisher Airlines was locked down after falling 5 per cent after promoter Vijay Mallya said that the United Breweries Group will be not use proceeds from a possible stake sale in United Spirits to infuse funds into the debt laden carrier. Other UB group stocks also closed lower today.
The market breadth was positive with over 65 per cent stocks rising on the broader BSE 500.
The Sensex had surged nearly 300 points in early trade, but markets closed off the day's high tracking weakness in European stocks, which slipped into the red after a positive start. Asian shares saw gains on hope that economic reform and budget plans unveiled by Spain will help the debt-saddled nation manage its debt imbalances.
(With inputs from Thomson Reuters)
