Indices move closer to all time highs

After 2 days of weak openings and strong closings, markets opened cautiously today. Surging crude oil prices and uncertainty over monsoons have made the short term economic outlook somewhat cloudy.

All these negatives could not prevent the indices from trending higher right from morning. Apart from a minor reversal early in the afternoon, the indices were set on an up trend for the rest of the day.

Volumes continue to remain very low even as the indices near all time highs posted early this year. After a gap of few months, Sensex managed to close above 6900 levels and the Nifty above 2120.

Sensex closed at 6907, up 47 points and the Nifty at 2129, up 16 points from yesterday's close. Nifty June futures discount to the spot widened to 20 points from yesterday's 17 points.

Among Nifty stocks, Bharti, GAIL and Grasim were the major percentage gainers while SCI, Dabur and Cipla were the major losers.

US economic data released yesterday showed a decline in wholesale prices as well as retail sales for the month of May. Expectations of an end to interest rate hikes because of falling price levels helped the broad indices to close higher. While Dow and S&P 500 closed with gains NASDAQ closed on a flat note.