The 50-share NSE Nifty closed above the 5400 mark on Thursday, for the first time since August 3, 2011. It was completely lacklustre since the opening trade today, but it strengthened quite nicely in late trade with support from banks, technology and metals stocks. The market managed to cross this psychologically important level after seeing consolidation in a range of 5,320-5,400 this week.
The BSE benchmark rose 123.43 points or 0.7%, to close at 17,830.75 and the NSE benchmark gained 44.20 points at 5,412.35. The benchmarks rallied more than 19% since December (2011) lows, a rally led by foreign money. Foreign institutional investors pumped in more than Rs 18,000 crore in Indian equities since January 2012.
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However, experts are cautious on the market, after such a one way rally. They expect serious correction in the near-term.
Dilip Bhat of Prabhudas Lilladher said he would lean more towards caution at the current rates. "I still maintain that markets will correct and probably there could be serious correction even in the longer run," he added.
Among sectoral indices - the BSE Metal, Realty, Bank and Auto indices gained around 2%; IT and Power were up over 1%.