Indian benchmark indices, the Nifty and the Sensex, ended the day on a flat note with a rise of under one per cent.
The Nifty closed at 4,754.10, up 0.09 per cent (4.15 points) and the Sensex at 15,867.73, up 0.07 per cent (10.65 points).
The rally in the stocks of heavy engineering, capital goods and infrastructure companies, particularly in L&T, BHEL and cement, which started yesterday, continues.
Said a senior official from a brokerage: “The market seems to be reacting to the sentiment that after peaking of interest rate cycles, the next sector to benefit (after the commercial vehicle sector) would be infra and heavy engineering.”
“There is no denying that some buying has definitely taken place in Hindalco, M&M, Tata Motors and in HDFC in the financial side,’’ he added.
The volatility index India Vix was marginally lower by 0.45 per cent to close at 25.46.
Hero MotoCorp, Jaiprakash Associates, Bharti Airtel and Jindal Steel and Power were the top four laggards on the Nifty while Reliance Communications, Reliance Infrastructure, BPCL and Reliance Power were among the top four gainers.