The Sensex and Nifty closed higher in trade today powered by gains in banking and information technology stocks. While the Sensex rallied 269 points to 38,024, the Nifty gained 83 points to 11,426. Kotak Bank (4.31%), ONGC (2.84%) and PowerGrid (2.61%) were the top Sensex gainers.
Top Sensex losers were Hindustan Unilever (2.16%), YES Bank (1.92%) and Bharti Airtel (1.71%).
Of 30 Sensex stocks, 20 ended in green.
Investors and traders indulged in profit-booking during the last 30 minutes of trade after the Sensex and Nifty logged intra day highs of 500 points and 144 points to hit levels of 38,254 and 11,487, respectively.
On a weekly basis, Sensex has clocked 2.80% gains. The Nifty too has risen 2.60% during the period.
"The recent rally, which has taken place post consolidation of four months, was pending and is likely to stay... We are likely to breach the (NSE index) peak of 11,760 in the short term," said Pritesh Mehta, senior vice president, Yes Securities.
On Thursday, Sensex and Nifty ended flat in choppy session. The Sensex closed 2.72 points higher at 37754.89, while Nifty was up 1.60 points at 11343.30. About 1216 shares advanced, 1468 shares declined, and 148 shares were unchanged.
Meanwhile, the mid cap index closed 83 points higher and small cap index fell 50 points to 14,837 level. During the last 19 sessions, midcaps and small caps indices have gained 1,368 points and 1,808 points, respectively.
Debabrata Bhattacharjee, Head of Research at CapitalAim said, "BSE midcaps and small caps stocks have outperformed the benchmark indices in the past sessions. The reason behind the outperformance was the attractive valuations of small-cap companies and these stocks are already beaten down since the correction in benchmark indices. Now, the stocks that are worthy with their performance in the past quarters can outperform in near future. Investors should be selective while choosing mid-cap or small caps companies in the portfolio. The momentum in large caps along with mid-caps and small caps starts simultaneously but the basic difference in small-cap and midcaps rally is sharp momentum because of their higher beta."
Market breadth was negative with 1206 stocks closing higher compared to 1479 falling on BSE. Banking and IT stocks led the gains with their BSE indices rising 513 points to 32,915 and 261 points to 15,158 levels, respectively.
Bank Nifty hit its 52 week high of 29,520. The index closed 458 points higher at 29,381 level. BSE bankex too rose to 33,098 level today, its fresh 52-week high.
Joseph Thomas, Head, Research at Emkay Wealth Management said, "The upward momentum in the markets continued to drive the indexes up with a relatively calm global environment and the definitive focus of the domestic markets more on a decisive outcome from the general elections. The flows from overseas from the FIIs have helped the markets, and a stable to stronger Rupee has been facilitated by likely year end repatriations too."
The index closed 513 points higher at 32,915 level. On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 1482.99 crore on Thursday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 817.77 crore, provisional data available with BSE showed.
59 stocks hit their 52-week highs compared to 11 touching their 52-week low on BSE. Number of stocks which hit upper and lower circuits were 201 and 218, respectively.
Shares rose Friday in Europe and Asia after a day of lackluster trading on Wall Street.
Britain's FTSE 100 climbed 0.5 percent after Parliament voted, following weeks of political gridlock, to try to delay the United Kingdom's split from the European Union, a move that will likely avert a chaotic withdrawal on the scheduled exit date of March 29.
Germany's DAX edged 0.1 percent higher to 11,596.98 and the CAC 40 in France added 0.2 percent to 5358.27. Wall Street looked set for gains, with the future contract for the Dow Jones Industrial Average up 0.2 percent at 25,800 and that for the S&P 500 also up 0.2 percent, at 2,818.00.
In Asia, Japan's Nikkei 225 index jumped 0.8 percent to 21,450.85 as the Bank of Japan ended a policy meeting by keeping its key interest rate at minus 0.1 percent, maintaining its stance of extreme monetary easing and lavish stimulus.
Edited by Aseem Thapliyal