All sectoral indices barring PSU Bank closed in the green. Nifty Pharma and IT indices gained the most, rising over a percent each.
The Dalal Street was in a bullish mode on the first day of the week as benchmark indices ended at fresh record closing high yet again on Monday, tracking positive global cues and post GDP estimates and credit growth data.
Investors seem to be optimistic about December quarter earnings season that will be kicked off by IT biggies TCS and Infosys later in the week.
All sectoral indices barring PSU Bank closed in the green. Nifty Pharma and IT indices gained the most, rising over a percent each. Index heavyweights Infosys, HDFC, L&T, ITC and Reliance Industries were top contributors to Nifty's gains.
The 30-share BSE Sensex rallied 198.94 points to 34,352.79 while the 50-share NSE Nifty closed above 10,600-mark for the first time, gaining 64.70 points at 10,623.60.
"Markets are currently riding on the optimism and the real test would begin with the earnings season. Also, news regarding the upcoming Union Budget has already started causing ripples," Jayant Manglik, President, Religare Broking said.
Having said that, the trend is still up and will remain so till Nifty holds above 10400. However, handling volatile swings on stock specific front won't be easy, he feels. In short, traders should prepare themselves for volatility markets, Manglik added.
The broader markets also participated in the rally and outperformed benchmark indices again as the Nifty Midcap index was up 1 percent. About two shares advanced for every share falling on the NSE.
Infosys rallied 2.4 percent after while maintaining a Buy call, global brokerage firm CLSA raised its 12-month target price to Rs 1,230 from Rs 1,140 earlier ahead of results for the quarter ended December. "Infosys just saw through one of its worst recent years but the company has the potential of completing strategic retooling and improve capital allocation,” the research house said, adding it expects valuation gap with peers to narrow going forward. TCS also gained a percent.
L&T was up 1.8 percent as its construction subsidiary has bagged 3 EPC orders worth Rs 2,265 crore from Andhra Pradesh government. Oil retailers HPCL, BPCL and IOC gained 1-2 percent after Brent crude oil prices stabilised around USD 67-68 a barrel.
Pharma stocks hogged limelight following news from USFDA. Sun Pharma was up 2.2 percent as sources told CNBC-TV18 that the USFDA will inspect its Halol plant for two weeks in February.
Indoco Remedies gained over a percent after CNBC-TV18 reports quoting sources that its USFDA is expected to begin inspecting its unit 1 in Goa plant next week. Orchid Pharma was locked at 5 percent upper circuit on getting establishment inspection report from USFDA for Chennai plant while Unichem Labs was up 5 percent on board approval for share buyback of up to Rs 885.80 crore and Q3 earnings.
Telecom stocks cracked on tariff war. Bharti Airtel and Idea Cellular slipped 4-5 percent.
HDFC, ITC, Indiabulls Housing, Lupin, Tech Mahindra and Coal India among others gained 1-3 percent whereas HDFC Bank and SBI were mildly lower.
South Indian Bank (up 2.9 percent) and Shalby (up 7.4 percent) also participated in the rally ahead of its earnings tomorrow. Satin Creditcare spiked 12 percent after the global emerging markets investment firm invested Rs 80 crore in the company.
GVK Power was locked at 5 percent upper circuit on concession agreement for the Navi Mumbai International Airport project, with CIDCO. Prakash Industries rallied 7 percent on solid Q3 earnings growth and strong Q4 outlook.
Jindal Steel & Power gained 7 percent as the company will be raising Rs 1,000 crore for payment of dues to suppliers and vendors through QIP and completed all projects in Angul steel plant.
Jaypee Infratech was up 6 percent after a media report indicated that Tata Housing and the Lodha Group have filed initial bids for the debt-laden entity.On the global front, Asian shares closed higher following the strong lead from Wall Street in the last session. European markets moved higher with the Germany DAX and France CAC rising 0.4 percent at the time of filing this piece.