The Nifty and the Sensex rose in excess of 0.8 per cent on Wednesday.
The Nifty closed above 5,900 levels at 5,906, up 50 points. The Sensex closed at 19,417, up 162 points.
An India Strategy report by Kotak Institutional Equities said rate sensitive scrips (such as auto and NBFC) were trading at their 12-month fair valuation and hence were reducing the weight of these stocks in their model portfolio. It added that valuation of quality stocks was outside their comfort zone.
Volatility was down three per cent and the volatility index India Vix closed at 14.10.
Bharti Airtel, JP Associates, ICICI Bank, L&T and Jindal Steel were the top five Nifty gainers, while HUL, Hero Motocorp, Grasim, Infosys and HCL tech were the top losers