Nifty ends above 200 DMA of 4230; broader mkts outperform

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It was another day of strong performance from the benchmark indices on the back of positive global cues and huge buying in the high beta stocks. The Nifty closed successfully above the 200 DMA (daily moving average) of 4230 and the Sensex sustained above the 14000 mark in the second half of trade.

The rally was led by infrastructure (capital goods + power), metal, rate sensitive and oil & gas stocks; respective indices shot up 2.5-8%. All the BSE sectoral indices ended in the green. Only Infosys and Ambuja Cements closed in red among the Nifty 50 and Sensex 30 stocks.

The broader indices outperformed the benchmark indices in today's trade as well. The market breadth was strong; about 2097 shares advanced while 622 shares declined on the BSE. Nearly 440 shares remained unchanged.

The 30-share BSE Sensex closed at 14,253.24, up 399.54 points or 2.88% and the 50-share NSE Nifty surged 2.97% or 122.10 points, to settle at 4233.50. The Nifty July futures closed in premium. Among the broader indices, the BSE Midcap Index went up 4.15% and Smallcap Index rose 4.6%.

Seshadri Sen of Macquarie Research said that even as the market outlook in the short term remained difficult to call due to mixed cues, he saw an upside to the market in the medium and long term. "We have revised our March 2010 Sensex target to 18,000," he added.

Q1FY10 earnings, he said, were likely to be better than Q4 of FY09. "High beta stocks continue to be our favorites for the long term, financials and infrastructure remain our top bet," he added.

Hindalco, Jaiprakash Associates, DLF, Hero Honda, BHEL, Reliance Power and Idea Cellular were top gainers, went up 6-8.5%.
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