Nifty ends above 4700; banks, oil & gas lift spirits

The market saw smart rebound in the afternoon trade after more than 200 points fall on the Sensex. The Nifty clawed back above the 4700-mark for the first time in last five sessions on closing basis, aided by further short covering in banks, capital goods, oil & gas, FMCG and power stocks. European markets too lifted the confidence, rising 1-1.5% led by banks. The Sensex gained 128.15 points, to close at 15,813.36. The Nifty was up 40.70 points, to end at 4,733.85.

Experts feel proposal from the government to reduce fiscal deficit may be the positive new for market in afternoon trade today, but according to him, the market is still in range of 4500-4900.

The Finance Ministry's new strategy to meet fiscal deficit target is finalised. A new company will be set up to buy PSU shares from government and is expecting Rs 70,000 cr from stake sale. According to sources, the new company will be set up by January 15, while the cabinet note on new company will be circulated next week. The cabinet note proposes to wind up Specified Undertaking of the Unit Trust of India (SUUTI).

Meanwhile, Deven Choksey of KR Choksey Shares and Securities feels that some of this kind of positive news could definitely result into a kind of a better confidence into the market and that could lead to an upside going forward.

Shares of ICICI Bank led the rally from front, gaining 3.5% followed by 2.8% upside in SBI and 1.8% in HDFC Bank.

Among sectoral indices, the BSE Bank, Realty and Power indices were up 2-3% while Auto, Capital Goods, Oil & Gas and FMCG moved up 1-1.7%.