Sensex, Nifty gain on Asian strength, NTPC falls

The BSE Sensex gained over 100 points on Wednesday tracking strength in Asian stocks. However, the benchmark immediately pared gains reflecting the continued profit taking and consolidation in equities.

The Sensex traded 52 points or 0.26 per cent higher at 19,712 while the Nifty advanced 14 points to 5,971 as of 09.30 a.m. The rupee was up at 53.02 to the dollar.

The BSE Sensex has fallen 450 points over the last seven sessions and many analysts believe that markets have topped out.

Somil Mehta of Sharekhan told NDTV Profit that a close below 5,940 on the Nifty will lead to a sharp downward correction in markets.

Technical analyst Sarvendra Srivastava said as long as 5,940 is held on the Nifty, he would retain his bullish stance.

"The Dow Jones is sitting near a new high, Germany's DAX is close to an all-time high... Our markets should also attempt a breakout to all-time new highs," Mr Srivastava added.

All groups of stocks traded higher. On the Nifty, 33 of the 50 stocks traded in the green.

Infra lender IDFC was the top Nifty gainer, rising over 1.5 per cent. Car maker Maruti Suzuki, PSU lender Bank of Baroda and cement maker Jaiprakash Associates also traded with over 1.5 per cent gains.

Bank of Baroda shares edged up after falling nearly 10 per cent since the announcement of third quarter earnings. Maruti Suzuki shares have seen sustained gains after strong numbers and multiple upgrades.

FMCG Major HUL, which has corrected since Q3 earnings, was the top Nifty loser. The stock traded 1 per cent lower.

State-run power major NTPC declined ahead of the proposed share sale on Thursday. (Read full story)