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The markets kicked off the week on a strong note. Boosted by positive global cues, the indices surged ahead and closed with handy gains. Nifty closed at 5,732 up 123 points, while Sensex shut shop at 19,248 up 395 points.

Markets closed the day with handsome gains on heavy buying seen in scrips across sectors. It was a good of trade for most of the equity markets across globe. Asia had a strong session today, barring Shanghai Comp most of the Asia closed in green. Europe was also trading in positive terrain.

HDFC Bank, Tata Steel, SAIL, Bharti Airtel, Unitech, HDFC, TCS, ONGC, Reliance Energy are among the top gainers. Deccan Aviation, Voltas, IndusInd Bank were among the strong midcap stocks.

Technolgy stocks have bounced back today and were among the top gainers.

Dipan Mehta, Member, BSE & NSE feels that some FII money may have been coming into the Indian markets. He said, “Markets are always right and although there is skepticism, the screen clearly shows the 400-point rally. Today I think some of the FII money may have been coming into the market. We have been seeing consistent negative flows over the past almost three weeks or so. But today, maybe slightly different, given the fact that a lot of largecap stocks have rallied on the back of decent volumes. So that is one part of the reason. Some amount of short covering as well as build up on the futures side and fresh long positions also could be responsible for this kind of a rally that we have seen.”

He further added that there may be some flows coming in from retail investors and domestic investors. “At the same time I think the retail investors who are pegged down by some other worries in the global markets and with some of the concerns easing, there maybe a surge of flows coming in from retail investors and domestic investors as well because we are seeing a lot of the action in some of the side counters and the cash group, the B group shares as well. Question is whether the market is scaled to go beyond 20,000 and holds those gains. I do not think that is a possibility,” he said.

Deepak Mohoni Of Trendwatch (India) says that he would hold on to positions because there is global rally building up, apparently on the word that the pre-Christmas sales in the US have been very good. “So if there is a global rally that you certainly don’t want to argue against, and as far as 20,000 is concerned, that is only 3.5%-4% from here. So that is not really formidable target in percentage terms. So I think its okay to be optimistic, at least in the short-term.”

Source: Moneycontrol.com