Sensex, Nifty end above psychological levels amid short covering ahead of expiry

Domestic equities made a perfect start to the New Year-bound week, with both Sensex & Nifty closing above their respective psychological barriers amid short covering in several beaten down stocks ahead of this week’s current month’s F&O expiry. [caption id=“attachment_2562524” align=“alignleft” width=“380”]  Reuters[/caption] In a trading session marked with thin volumes and weak support from other Asian counterparts, benchmark Sensex yet raced past the 26,000-mark on the back of gains in pharma, banking and power shares and touched an intra-day high of 26,073.41, up 234 points. Although, the index closed off its highs, the 30-share BSE S&P Sensex ended the session above the 26k-mark at 26,034.13, up 195.42 points, or 0.8 percent from previous close. The broader 50-stock CNX Nifty, too, breached the crucial 7,900-mark and wrapped the session at 7,925.15, up 64.10 points, or 0.8 percent. Market breadth ended positive, with 1,537 stocks advancing against 1,161 declines on BSE. Elsewhere in Asia, Japan’s Nikkei rose 0.6 percent, but China’s Shanghai Composite tumbled 2.6 percent and Hang Seng dropped 1 percent today. Local traders say markets may not see hectic trading activity this week owing to subdued FII performance, which are absent from the markets due to year-end holiday celebrations. According to them, equity indices may move in a range-bound mode with a mixed bias this week, as lack of investor participation coupled with sluggish global and internal factors would keep investors on the sidelines. Among the major gainers driving the Sensex rally, shares of Dr Reddy’s Lab surged 3.5 percent to Rs 3,116.35, NTPC jumped 3.4 percent to Rs 143.75, Tata Motors moved up 2.8 percent to Rs 393.25, ONGC added 2.6 percent to Rs 239.95, Sun Pharma gained 2.5 percent to Rs 811.50 and ICICI Bank was up 2.5 percent at Rs 264.15.