Markets see second weekly gain; auto, realty, metal, IT rally

The benchmark indices ended higher and continued their run-up for the second straight day. Huge upsurge in auto, realty and metal stocks helped the Nifty to end the week above the 4550 level. Power, telecom, technology and capital goods stocks were the other gainers. The markets rallied for the second straight week post the budget week.

Over 2-2.5% surge in US markets late Thursday night due to good earnings and economic data, more than 0.5% upside in European markets and 0.4-2% gains in Asian markets also helped our markets to remain on the higher side in the second half of the trade. They were volatile in the first half of the trade.

The 30-share BSE Sensex closed 15,378.96, up 147.92 points or 0.97% and the 50-share NSE Nifty rose 0.99% or 44.80 points, to settle at 4568.55. The former index gained 4.3% and later one up 4.43% this week. The broader indices outperformed the benchmark indices; the BSE Midcap went up 1.7% and Smallcap Index gained 1.8%.

Technical Analyst, Rajat K Bose said the chances were that next target for the Nifty would be 4,609 and after that it would be 4,641 to about 4,654. "I think the Nifty is actually moving into the higher trajectory in which we will conquer that 4,650 kind of level from there to about 4,680 and once we get a close above 4,680 you will see real upward momentum ushering in"

Auto space was the real star of the day led by Maruti Suzuki, which has seen an all-time high of 1,397.50. It closed at 1,377.85, up 6.35% on the BSE. The company reported strong growth in Q1FY10 numbers on Thursday. The auto space continued its run-up for the second day and the index gained 5.14%.

Bharat Forge surged 14.06%. The company bagged USD 25 million order from General Motors. Chairman and Managing Director, Baba Kalyani said 2011 would see real impact of the GM order. Its Q1FY10 net sales increased 23% on QoQ basis.