It was a lackluster session on the street today as the Sensex closed up 37 points to 17,462.8 points, however, it was down 67 points from the day's high. The S&P CNX Nifty managed to close above the 5,300 level, the first time since 19 April. The market breadth was positive. On the BSE, 1,768 stocks advanced while 1,123 declined.
The BSE mid-cap and small cap indices outperformed the benchmark indices as they were up almost 0.9 percent.
Among sectoral indices, nine closed in the green. The top gainer was the BSE metals index which closed up 2.12 percent. Metal shares gained on hopes of further monetary policy easing from China.
In the 30-share Sensex pack, 20 stocks advanced led by Sterlite Inds (5.27 percent), Maruti Suzuki (2.56 percent) and Bharti Airtel (2.19 percent).
The rupee recovered quite sharply from day's low of 54.75 against the US dollar, which gained 4 paise at 54.32 a dollar. Foreign investment also continued. Foreign institutional investors (FIIs) bought shares worth Rs 589.70 crore on 3 July.
While a lot has been said about the markets in the last few days, Krishna Kumar Karwa of Emkay Global Financial Services, says that the European Central Bank (ECB) meet and first quarter earnings of FY13 are likely to determine market direction now.
"After having moved almost by 8-9 percent in the month of June the market is in a consolidation mode for the last three-four days. It is waiting for further global cues to take a sense of its direction", he told CNBC-TV18.
However, he added that the mid cap space will continue to outperform as domestic institutional investors are active in the sector and are willing to take small bets. He recommends MindTree, Hexaware and NIIT Tech in the mid-cap space.