Sensex sheds phenomenal gains at close;Wipro,Tata Motors up

At 15.33 hrs IST, the Sensex closed in green with 100 points gain amid higher volatility. The Nifty oscillated around 5800 for second half of the day after touching intraday high of 5838. The volatility prevailed in the first half of the session wherein Sensex gained nearly 275 points and lost 175 points from days high in first one hour of trade.

The Sensex was up 146.61 points or 0.76% at 19354.94, and the Nifty was up 35.80 points or 0.62% at 5795.80. About 1023 shares advanced, 2062 shares declined, and 306 shares remain unchanged.

Commenting on this stellar rally in largecaps, Sanjay Dutt of Quantum Securities said markets are in fine fettle and that it was not the time to get cautious on its relentless upmove. He refuted claims by other market experts that it was sitting on a bubble and argued that Nifty has had a big base formation at 5300.

"A lot of smart money came in at 5000-5300 level," he said and maintained that retail investors will enter the rally if Nifty approaches 5900-6000 levels. Dutt has no doubt the markets will make a new high before the year end.

The pace at which the markets are reaching dizzying heights has left sceptics wondering about their theory of a crash. Speaking about the phenomenon, Ajay Srivastava of Dimensions Consulting says the analysis of a double-dip has no meaning any longer. The market, which is now empowered to conquer new heights, spelled the death of the sceptic. He sees domestic investors entering the rally in the near term and says talks of an imminent correction can be dismissed.

With good monsoons, the macroeconomic situation too has improved, which, Srivastava says, allows investors to accept the higher valuation trend in the markets. He also encourages investors to grab the opportunity to buy blue chips as he sees their story panning out well.