Markets flip-flopped for most part of the day, State Bank of India put downward pressure on the Sensex but frontliners like HDFC Bank, Infosys, TCS and ICICI Bank contributed 84 points and helped Sensex recover in the last leg of trading. The Sensex opened in the green at 20,851 and touched a high of 20,984. Profit-booking in financials dragged the index to the day's low of 20,763, down 89 points.
Finally, the benchmark surged 80 points and ended at 20,932 and the Nifty rose 28 points to close at 6302.
Analysts say that the current rally has not lost steam and there is further upside for the markets."Historically, the markets have peaked out at around 26x to 28x forward P/E (Price to Earnings) ratio.
"Currently, the Sensex is trading at 21x forward earnings. Hence, we have not run ahead of valuations," TS Harihar, Senior VP, ICICI Securities said.
On the global front, the Asian markets closed on a mixed note as investors awaited the Group of 20 nations meeting in Seoul this week and monthly data from China.
The key indices Hang Seng ended down 1% at 24,710 while the Nikkei shut shop at 9,694, losing 0.3% as exporters were under pressure on back of rising Yen.
However, Jakarta Composite gained 0.7% to close at 3,726 while Taiwan Weighted, Seoul Composite ended flat and China's Shanghai Composut fell 0.8%.
The European bourses surged after opening flat. The FTSE rose 0.4%, CAC and DAX have surged 0.2% each.
On the BSE sectoral chart, FMCG has climed up 2.5% along with BSE IT which lead the sectoral pack, up 1.1%.
Nestle, ended up 8.4%, Colgate Palmolive surged 8% and Hindustan uniliver rose 4.3%
from the FMCG sector. From the IT pack, TCS surged 2.2%, Financial Technologies rose 1.8% and Infosys was up 1.2%.
High beta realty stocks surged on back of gains in Indiabulls Real Estate, up 6.1%, followed by Peninsula Land, up 4.5% and Orbit Corporation, up 1.4%.
In the banking space, investors cashed out of SBI on account of its dismissal quarterly results, the stock fell over 4%.
Siddharth Bhamre, Derivate analyst from Angel Broking said, "do not expect SBI to rise above current levels of 3272 in this expiry due higher provisioning for bad loans."
Other losers from this space were Bank of Baroda, down 2.1% and IDBI Bank, down 0.9%.
Tata Motors from the auto space was in the top gear, the stock hit a record high of 1,295 ahead of Q2 results, the stocks settled at 1.270, up 0.2%.
Broader markets also ended in the green, midcap and small cap indices surged 0.4% and 0.95 each.
Among the Sensex-30 stocks the major gainers were Hindustan Unilever, up 4.3% followed by HDFC Bank, TCS, Sterlite Industries up over 2% each.
The losers on the benchmark index apart from SBI were Maruti Suzuki, down 1.2, Reliance Infrastructure fell over 1% and ONGC dipped 0.8%.
The market breadth was positive. Of the total 3086 stocks traded on the BSE, 1708 stocks advanced while 1291 declined.
