The Hindu Business Line : Firm global cues, heavy buying lift Nifty

Mumbai May 21 The NSE S&P CNX Nifty today touched an all-time high at 4,269 points backed by firm global cues and heavy interest by both domestic and institutional investors. Major world indices including NYSE, Nasdaq, S&P 500 gained over 0.5 per cent.

The Nifty followed last week's firm momentum in the markets. Also, the positive wide spread rally helped the bourses to gain and Nifty closed at 4,260.90 points, up 1.10 per cent.

The BSE Sensex also gained 115.19 points or 0.81 per cent to close at 14,418.60 points.

"Market breadth was positive along with high turnover. With liquidity in the markets, we expect the momentum in the markets to continue in line with the global markets," said Mr Dinesh Thakkar, CMD Angel Broking.

Stocks of 1,395 companies advanced on the BSE while that of 1,194 companies declined.

Only auto, IT and consumer durable stocks lost. FMCG and Oil and gas indices were the biggest gainers in the rally.

Positive earnings growth figures of companies have also propelled the Indian markets to perform better, said analysts. "The earnings momentum is likely to continue and there is also a belief that interest rates seem to have peaked out which are the positive triggers for the markets," said Mr Rajat, Rajgarhia, Head - Institutional Research, Motilal Oswal Securities Ltd.

Both domestic and foreign investors bought heavily pushing up the Nifty. FIIs were net buyers at Rs 182.66 crore, while domestic institutional buyers were net buyers at Rs 257.93 crore as per the provisional figures on NSE.

"Until the F&O settlement for the month takes place, markets should not face any problem," said Ms Shahina Mukadam, Head - Equity Research, IDBI Capital Market Services.

There could be small intra-day corrections but markets are expected to trade in the upward zone, said an analyst.