Nifty ends above 6K in Sept series; posts record turnover

Equity benchmarks witnessed a sharp spike up in last half-an-hour of trade after a choppy trade with a negative bias since morning and closed the September series on a strong note. It was a historical session for the markets wherein it clocked the highest ever turnover for Indian. Total traded turnover on exchanges stood at Rs 2,36,128.71 crore. This included Rs 19,963.81 crore from NSE cash segment, Rs 2,11,604.77 crore from NSE F&O and the rest Rs 4,560.13 crore from BSE cash segment.

Meanwhile, the NSE 50-share Nifty and BSE 30-share Sensex managed to hold their psychological levels of 6,000 and 20,000 respectively spurred by buying in financial, FMCG, metal, technology and capital goods companies' shares. However, the sell-off seen in oil & gas, cement and select auto companies' shares.

The spectacular show by markets was mainly on account of foreign institutional investors (FIIs), which were consistent net buyers in the month of September. The markets witnessed highest ever monthly inflow of funds from FIIs, who bought Rs 25,196.37 crore worth of equities in September (including Wednesday's provisional data). Both equity benchmarks rallied 10% each in the same period.

However, experts remained cautious even after the run up as the Nifty rallied through the 5500 level to 6000-mark within a month. Commenting on the markets, Dilip Bhat of Prabhudas Lilladher said, he had been cautious since the time the index was at 5,500. "The kind of surge it has shown, especially in the last one month on the back of almost about Rs 25,000 or 26,000 crore of FII money in a single month. We still maintain that markets are trading at their over valued level at the moment. This is not a very comfortable levels to really buy into the stocks. So I would certainly be a lot more cautious and discret as I was even at 5,500," he added.

Similar set of views came in from Nischal Maheshwari of Edelweiss who too maintained a cautious stance on the market. He said, "One of the things to watch out for is the Ayodhaya issue but if nothing comes off then the broader call still remains to be that there is enough liquidity in the system which is going to keep on driving this markets up in the short run."

The 30-share BSE Sensex closed at 20,069.12, up 112.78 points or 0.57% and the 50-share NSE Nifty rose 38.65 points or 0.65% to settle at 6,029.95.