Mumbai: The cheap money announced by ECB chief Mario Draghi, FII buying and continued optimism on growth generating measures to be taken by the Narendra Modi government catapulted markets to resounding highs.
The Nifty crossed the 7,500 mark to close at 7,583.40 up 109.30 points and the Sensex hit 25,396.46 up 376.95 points.
This rally could sustain for a while as more and more people joined the party, said Ambareesh Baliga, managing partner, Edelweiss Wealth.
He said even companies that see little or no trading like Bartronics have gone up three times to Rs 15 on hectic buying. At its peak it was Rs 185. “Investors are looking for stocks that have not moved up in the hope they will, with the general sentiment being upbeat,” he said.
Nifty has a target of 7,700 in the short term, but is a heavily over bought which can cause higher level sell-off in the near term said Alex Mathews, head research, Geojit BNP Paribas Financial Services Ltd.
Barring the IT and metal sectors which closed down around 0.63 per cent and 0.34 per cent respectively all other sectors closed in green.
The major gainers in the sectoral front were realty and oil and gas sector which closed up around 5.02 per cent and 4.82 per cent respectively.
Volumes are overall higher than the usual average, which indicates strength in the rally said Rakesh Goyal,senior vice -president, Bonanza Portfolio Ltd.
Broad based buying continues and most of the sectors are seen participating in this rally he said.
