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Sensex, Nifty poised for strong start amid global rally

Indian markets are poised for another strong start amid a strong global rally that sent the U.S.' S&P 500 to another record high overnight. (Read: Dow ends above 15,000 for first time, S&P closes at record)

India's key benchmarks, the BSE Sensex and the 50-share Nifty closed at a three-month high on Tuesday. (Track markets)

The Nifty is poised to open above the key 6,050 mark according to futures trade on the Singapore Exchange. Asian markets also traded with strong gains, with Japan's Nikkei gaining 1.35 per cent in early trade.

Market analyst Sarvendra Srivastava raised his target on the Nifty to 6,250-6,300 after earlier saying that the Nifty may hit 6,150 in the short term. Investors should place a stop loss at 5,924 levels, Mr Srivastava added.

Hopes of foreign inflows and government efforts to revive the economy are supporting markets after the Reserve Bank of India cut interest rates for a third time this year, although it signalled little room for further policy easing.

Foreign funds have bought a net $680 million of Indian stocks in the three sessions to May 3, taking the 2013 net buying to a total of $12.17 billion.

"Worldwide economies are reviving due to quantitative easing and countries like India should continue to benefit from portfolio flows in the medium term," said R.K. Gupta, managing director at Taurus Mutual Fund.

Global cues:

The Dow closed above 15,000 for the first time on Tuesday. Expectations of continued foreign buying and the powerful rally in global equities have helped bullish sentiments on the Dalal Street.


(With inputs from Reuters)