Mumbai: The Sensex staged an excellent performance on Tuesday after witnessing a consolidation in the previous four sessions, though there was small bout of profit booking in last few minutes of trade. The Sensex rose 276.69 points, to close at 16,466.05 and the Nifty moved up 93.40 points to 4,967.30 after hitting an intra-day high of 4,975.55.
Better than expected Chinese Q4 GDP, strong European cues and appreciation in the rupee lifted confidence of Dalal Street. Sharp upside in index heavyweights was an indication that some foreign money stepped in the market.
Ambareesh Baliga, COO of Way2Wealth feels that the Nifty can go to 5050-5100 levels because the momentum is good.
"It is not just short covering. Actually we are seeing some real buying especially by the smart investors like institutions. At the same time, investors who were sitting on the sidelines have started buying. So it can sustain for a while longer," he explained.
However, technical analyst, Sudarshan Sukhani of s2analytics.com warned that the market is now at the very end of this leg at least. "It's possible that it will go up again after a correction or consolidation," he said.
Chinese Shanghai shot up 4.18 per cent after better than expected growth reported in quarter ended December 2011. Growth in gross domestic product expanded 8.9 per cent in the October-December as against analysts' forecast of 8.7 per cent, though it was at 2.5-year low.
Other Asian markets rallied 1-3 per cent. European markets too were up 1-1.5 per cent. The Dow Jones futures gained 118 points, at the time of closing of Indian equities.
Back home, the Indian rupee touched two-month high on Tuesday. It appreciated by 47 paise to 50.90 a dollar. Even precious metals like gold and silver moved up 1 per cent and 2.5 per cent, respectively after government changed import duty.
Shares of country's largest car maker Maruti topped the buying list, rising 10.5 per cent. The company raised prices of most vehicle models by Rs 2,400-17,000 due to high input costs & currency. Tata Motors, M&M, Bajaj Auto and Hero Motocorp were up 1.7-2.5 per cent.
Index heavyweights Reliance Industries was up 3.8 per cent and ONGC up 2 per cent. Capital goods major L&T shot up 5 per cent while BHEL rose 1.5 per cent.
Metals stocks remained on buyers' radar; Hindalco and Tata Steel surged 5-6 per cent. Coal India, Jindal Steel and Sterlite Industries moved up 2-3 per cent.
Among banks, SBI and HDFC Bank gained 1.3 per cent while ICICI Bank lost 0.75 per cent on profit booking. In the technology space, Infosys and Wipro were up 1-1.8 per cent whereas TCS fell 0.3 per cent.
However, ITC, HDFC, Tata Power and GAIL under performed other largecaps.
About two shares advanced for every share falling on the BSE. United Bank of India, Jet Airways, Kingfisher Airlines, HDIL, Oberoi Realty, Orbit Corp, ITNL and VST Industries rallied 5-20 per cent. However, Balrampur Chini, Bajaj Hindusthan and Chambal Fertilisers were under pressure.
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