Nifty hits 5,400 after 5 months; Sensex gains 194 points
The consumer price index (CPI) series was launched in January this year to more accurately capture inflation at the retail level – or the actual prices that consumers pay.
A strong rally in the last hour of trade helped the 50-share Nifty index close above the strong resistance of 5,400 for the first time since March 16, 2012. The BSE Sensex gained 194 points to end near the day high.
Indian stocks have witnessed steady gains over the month, discounting a slew of negative data and news points.
"There is a lot of investment buying happening... People are taking advantage of cheap valuations. The Nifty may be adequately valued, but there are scores of stocks that look interesting," investment advisor Paras Adenwala said.
Technical analysts expect the Nifty to now take out the 5,500 mark, which was a strong resistance for markets after the budget in March.
"The next level for the Nifty is 5,480-5,500 while 5,350 remains a very strong support for now," Parag Doctor, head (trading strategies) at Keynote Capitals told NDTV Profit.
Indian markets were supported by positive global cues. Most European stocks traded in the green amid hopes of further monetary easing.
IT stocks outperformed other groups of stocks on the back of gains in Infosys, which ended 2.5 per cent higher. Infosys saw buying interest after a US court threw out whistleblower Jack Palmer's harassment suit against the company.
37 of the 50 stocks closed higher on the Nifty index. High beta realty and metal stocks saw strong buying interest. Vedanta Group mining firms Sterlite Industries and Sesa Goa were the top Nifty gainers, rising 4.5 and 3.5 per cent respectively.
Realty major DLF gained 3.4 per cent. State run power utility firm NTPC also saw strong buying interest, ending 3.4 per cent higher.
Among the losers, mobile carrier Bharti Airtel was the top loser, falling 1.4 per cent after a ratings downgrade from brokerage firm Morgan Stanley. Aluminium maker Hindalco declined 1.2 per cent on news that Odisha's pollution control board had ordered a shutdown of the company's power plant near Hirakud.
The market breadth turned positive with 57 per cent stocks managing to advance on the broader BSE 500 index.