The markets continued rising as global cues helped major indices cross 52-week highs.
The Sensex was up 129.50 points to close at 17360.31. This is a 52-week high for the index beating the previous high of 17326.01, at which it closed on 17th October.
Auto was the top gainer of the day, rising 1.50%, while Metals rose 1.42%. Consumer Durables was up 1.07% during the day. No sector reported losses for the day.
Fund managers are bullish at these levels as well, with expectations of improvement in earnings.
“Corporate earnings have been positive and as the economy continues to showimprovement, the earnings cycle will become more robust. On that backdrop,current valuations appear to be fair,” said Sandeep Kothari, Fund Manager at Fidelity.
The Nifty was up 33.80 points to close with a gain of 0.66%. The index closed at 5178.40 on Thursday.
There were 35 advances and 15 declines on the index. Tata Motors was the top gainer of the day, rising 4.17% to close at Rs. 777.60. Hindalco rose 3.00% while Reliance Infra rose 2.55%. Hero Honda and Tata Steel also registered gains.
Idea was the biggest loser on the Nifty, dropping 2.50% to close at Rs.58.45. Ranbaxy was down 1.92%, JP Associates, Bharti Airtel and Powergrid also ended with losses.
The Nikkei was up 1.53%, the Kospi rose 1.26% and the Hang Seng rose 0.88%. Chinese markets were buoyant with the Shanghai Composite rising 2.59% on a statement that monetary policy would continue to be geared towards growth.
“In my view, the key risks to this scenario remain rising inflation and the consequentaggressive tightening of interest rates by the central bank. While current market levels reflect some of this expectation, any surprises could lead to volatility,” said Sandeep Kothari.
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