Nifty closes above 4100; all sectoral indices in green

The benchmark indices showed spectacular performance after seeing a downfall over 10% in last few sessions. This recovery was led by high beta stocks, which plunged the most post the budget. Sharp upmove in US markets led by financials late night on Monday and rally in Asian markets helped the markets in today's trade.

All sectoral indices ended in the green. Huge buying in metal, realty, infrastructure, banking and oil & gas nudged the Nifty to claw back successfully above the 4100 mark and the Sensex above 13900 level.

Only HDFC Bank closed in the red among Nifty 50 stocks and Sensex 30 stocks. The broader indices outperformed the benchmark indices; the BSE Midcap and Smallcap indices gained 4.6% each.

The 30-share BSE Sensex surged 453.38 points or 3.38%, to settle at 13,853.70 and the 50-share NSE Nifty shut shop at 4111.40, up 3.46% or 137.35 points, after seeing a day's high of 4128.90. The Nifty July futures also turned into premium in the second half of the trade and ended with 23.3 points premium.

Sajiv Dhawan of JV Capital Services said we saw the first wave of short covering earlier today. "The turnover is lower but we are seeing still the bullish sentiment in the market. It is a little bit skeptical and not convinced that the markets will go back to the 4,300 plus sort of levels and what we are seeing today is a bit of a bounceback in lot of the stocks which have been oversold and battered over the last 7-10 days."

Among the frontliners, DLF, Reliance Infrastructure, Jaiprakash Associates, ICICI Bank, HDFC, Suzlon Energy, Unitech and Reliance Capital were top gainers, gained 7-11.5%.