Global cues, short covering aid Nifty to close above 5100

The markets saw another spectacular session today led by positive global cues as Dubai's concerns ease and short covering. It was an extension to the upbeat mood post Monday's better-than-expected Q2 GDP (gross domestic product) numbers. The rally was seen across all sectors and in high beta stocks; rate sensitives, pharma and metal stocks, and Reliance Industries were the major gainers.

Global markets rallied today post easing of Dubai's Debt crisis. Dubai World said that they would restructure debt worth $26 billion against earlier talk of $59 billion.

European markets were trading 1.6-2% higher and US index futures gained 0.8% each, at the time of closing of Indian equities. Asian markets ended strong for the second consecutive day. China's Shanghai rose 1.25% as manufacturing activity expanded further in November.

HSBC China Manufacturing PMI went up to 55.7 in November versus 55.4 in October whereas China's PMI (Purchasing Managers Index) remained unchanged at 55.2 in November versus October. Among other Asian indices, Nikkei rose 2.4%. Taiwan Weighted, Hang Seng, Kospi and Jakarta were up 0.9-1.5%.

S Betadpur of Independent International Investment Research said Dubai was a non issue overall for the Indian markets and now markets would go past fair value. "We will go past fair value on this rally until the year end because the fund flows are very strong coming in from overseas market. If you talk to any of our clients overseas they are all bullish on emerging markets." He also said India's GDP growth yesterday was very strong and today Purchasing Manager's index in China was very strong, so the two legs of the whole emerging markets were doing well. "The headline news in the west is always that you should be investing in emerging markets, so fund flows are going to be strong."

Better-than-expected gross domestic product (GDP) numbers announced on Monday, played merry in the market today as well. India's GDP grew 7.9% from a year earlier after rising 6.1% in the previous quarter.