Global cues help Sensex cross 4600

The markets moved higher for the third day in a row on strong global cues.

The Hang Seng was up 1.67% while the Nikkei moved up 3.35%. Chinese markets were also trading strong with a gain of 1.10% on the Shanghai index.

In India the Sensex was up 387.92 points or 2.55% to close at Rs.15628.75.

The realty index was the top sectoral gainer of the day. It moved up 5.09%. Consumer durables and FMCG were the other gainers of the day. The consumer durables index was up 3.59% while the FMCG index moved 3.53% upwards.

Market participants still see value in these consumption centered sectors opine analysts. “There is still demand for the products despite the poor rains. It is too early to take a call on the consumer spending, as such there is some buying which is coming into these sectors,” said Manish Bandi, Vice President at India Infoline.

However, PSU and the healthcare indices were gross underperformers. While the latter gained 0.92%, the former did slightly better to close at Rs.0.97%.

The Nifty was up 2.52% to close at 4642.80. The gain of 114 points was heralded by a gap-up opening of 8 points. The Nifty closed just 14 points off its intra-day high of 4656.30.

Tata Motors was the top gainer of the day. It moved up 6.01% to close at Rs. 458.85. Unitech came in second with its gain of 5.71%. It closed at Rs.90.65. Cairn, Siemens and ITC were the other members of the top five gainers club among the Nifty stocks.

There were three losers among the Nifty set. BPCL dropped 2.37% to close at Rs.518.00.  Idea and Cipla were down 0.42% and 0.04% respectively.

"Although there are some valuation concerns in the power sector, it is likely to go through a re-rating. A longer term view of 2-3 years is likely to give returns in the sector," said Manish Bandi.