Sensex closes 131 pts higher but RIL, SBI trim gains

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs

The market closed higher for third consecutive session, though it erased some gains post Supreme Court's verdict on 2G case. Capital goods, technology, private banks and metals stocks, and Bharti Airtel helped the market. However, fall in Reliance and SBI trimmed gains in the last trading hours.

The Sensex rose 131.27 points or 0.76%, to close at 17,431.85 while the Nifty went up 34.20 points or 0.65%, to end at 5,269.90 after hitting an intraday low of 5,225.75. Global cues too were positive, tracking better than expected manufacturing data in US and UK yesterday. Asian markets rallied 1-2%.

However, the consistent upmove in market since January has not managed to woo Samir Arora, Fund Manager at Helios Capital. According to Arora, the current rally is led by deployment of existing cash with Asian funds.

"I have still not turned to being fully bullish because if I look at either the world markets or India and stocks within that, the stocks that have gone up the most are the stocks which got hit the most but unlike in 2008 and 2009 when I believed that India had been unfairly hit," he elaborates.

Meanwhile, shares of Bharti topped the buying list today, rising 6.9% on hopes that the company may get more spectrum post SC verdict. SC said all spectrum issues on or post January 2008 would be cancelled. Idea Cellular too gained 2.7% on the same buzz.

However, other telecom stocks were not so lucky and succumb to selling pressure. SC cancelled 122 licenses (of total 11 companies) issued after January 2008.

Shares of Sterlite Industries, DLF, Wipro, GAIL and Hindalco climbed 3-4%. ICICI Bank, TCS, L&T, ONGC, HUL, Tata Steel, BHEL and Coal India were up 1-1.6%; Infosys rose 0.7%.

However, index heavyweights Reliance and SBI fell 0.2% each. In an intraday trade, SBI tanked over 3.5% after rumours that the bank has major exposure to telecom sector. But, the management clarified that it has funded exposure of Rs 1,100 crore and non-fund exposure at Rs 3,400 crore; the bank doesn't see significant risks to non-fund based exposure.

ITC, Tata Motors, Cipla and Jindal Steel were down 1-2.5%.

Advancing shares outnumbered declining by 1566 to 1297 on the BSE.

In the midcap space, Hexaware Tech shot up 10.6% on better than expected numbers in Q4. Shoppers Stop, Aban Offshore and Prestige Estate surged 11.5-16.5%.