Indices continue to defy gravity as they post record highs

The markets opened the day with a good positive gap and touched new highs early in the morning itself. Most analysts have been advising caution after the indices touched new all time highs on Friday and markets were showing some amount of tiredness.

Most traders seem to have ignored the predictions of an impending correction. Most of the gains were on account of a build up of fresh positions on the July derivative series, as evident from the narrowing of futures discount to the spot index over the last two days.

The indices saw some decline fall before noon, which took them very close to Friday's closing levels. But from there on, they steadily gained ground.

The last half hour saw a surge, led by Infosys, which took the indices past the highs reached in morning trades.

Both the Sensex and Nifty closed at new all time highs of 7277 and 2231 respectively. Both indices closed with gains of nearly a per cent each from Friday's closing. Nifty July futures closed at a discount of 4 points to the spot index.

Among Nifty stocks, VSNL, Zee Tele and Tata Power were the major percentage gainers while Maruti, L&T and BPCL were the major losers.