Buoyed by New Year sentiment, the NSE Nifty closed the day by breaching the psychological 6,000 mark. This is expected to usher in positive sentiment in the market over the next few days, say analysts.
The Nifty closed at 6,009.50, up 16.25 points, while the Sensex closed at 19,764.68, up 50.54 points. The Nifty had touched the 6,000 mark on Wednesday during intra-day trade. Both benchmarks have registered a new high since January 6, 2011.
Foreign institutions have stepped up their buying after the US Senate and Congress agreed on, and passed, a new law that staves off a fiscal crisis. They have pumped in close to Rs 4,000 crore in just three trading sessions in 2013.
Foreign funds bought a net $24.5 billion in 2012, the highest among 10 Asian markets tracked by Bloomberg. “Nifty continued Tuesday’s momentum and climbed past the 6,000 mark in intra-day trade as indices across Asia rallied on the US fiscal cliff being averted. Sentiment also improved after India's manufacturing activity surged to a six-month high in December 2012,” said Amar Ambani, Head of Research, IIFL.
“Going ahead, we firmly believe the government policy measures will continue as downgrade fears have not been completely dispelled. This will provide further impetus to the recent rally,” said Ambani.
On the global front, US markets were up by over 2.3 per cent, while European markets traded on a subdued note. “Positive inflows from FIIs and reform hopes will push up the market in the coming days. The upcoming results season will also determine some of the market movements,” said Sanjeev Zarbade, Head of Research, Kotak Securities. FIIs invested $294.97 million in equity and debt during the day.
The Oil and Gas index was up 1.37 per cent, followed by the IT index. Top gainers were Dr Reddys Lab, Bharti Airtel and ONGC, while the losers were Tata Power, Sun Pharma and Maruti.