Market greets Fed decision

Nifty ends above 8,100 and Sensex at 27,112

Mumbai: Markets extended gains for the second consecutive trading on Thursday closing on a spectacular note after US Fed decided to keep US interest rates unchanged at 'zero level' for a good amount of time.

The benchmarking indices Sensex and Nifty surged nearly about 2 per cent thus posting a biggest daily gains in over three months. The markets assume that the foreign buying would enhance and improve fundamentals.

While Sensex zoomed about 481 points to end at 27,112 and Nifty soared over 139 points to close at 8,114. Also the broader markets surged with Midcap and Smallcap indices gaining about 3 per cent each. The market breadth in BSE with 2,237 shares advancing and 824 shares declining.

Also, Chinese Presidnet Xi Jinping announcement of investing about $20 billion in India in the next five year also boosted the sentiment. Both the countries have signed about 12 agreements, including 5-year commerce and trade pact.

Meanwhile, as per the data released by the bourses the foreign portfolio investors bought shares worth a net Rs 136 crore on Wednesday.

Analysts say, investors are totally excited looking at the prospects of Chinese investments in India's infrastructure sector which include railways and manufacturing. "It is time to use all major dips to buy and accumulate healthy and quality stocks," they say.

All the sectoral indices closed in positive note with Realty about 5 per cent, other like Consumer Durables, Auto, Capital Goods, O&G and Power gained about 2 to 3 per cent.

The gainers include: Unitech, HDIL, Indiabulls Real Estate, Oberoi Realty, DLF etc gained up to 11 per cent. Hero Moto, Tata Motors, L&T, BHEL, Dr Reddy's Lab and Bajaj Auto.

Zigzag movements
In a rollercoaster week, Nifty has witnessed a huge upswing with all indices closing in the green and the indices too getting into positive territory for the week with only one day to go for the week. Nifty closed above 8100 mark and would turn bearish only when it closes below 8020. However, one more positive day only would confirm the bullishness. Further, Nifty has been moving in a narrow range for the month despite a large move, and is yet to find a direction for the month. Nifty spot is expected to encounter resistance at 8155, 8190 and find support at 8075, 8040 for Friday. While global cues and funds flow are expected to guide the market based on the present conditions, it can be expected that the market is to be generally subdued in the midsession and witness zigzag movements thereafter. -Dr B Amaranatha Sastry