Sensex crossed 17,000 again but experts cautious ahead on short-term

The Sensex crossed the 17,000 mark for the first time in nearly 18 months. This was the first time that the markets have been at the level after May 21 when the Sensex closed at 17243.16.

"The market has clearly run ahead of itself. We may see some upgrades in the second quarter but we will have to wait and see if valuations justify them," said the chief investment officer of mutual fund. 

Second quarter results come out from the second week of October. 

"Going ahead we expect phase of consolidation as markets have run up very fast but medium to long term looks good on the back of recovery expected in the developed world and the governments of G-20 deciding not to withdraw the stimulus prematurely," said Abbas Merchant, AVP Research, Jaypee Capital Services. 

The Bombay Stock Exchange's bellwether index had a gap up opening for the second day in a row, when it opened at 16,868.46, up by 15 points from the previous close of 16,852.91. It was up 273.93 points by the end of day's to close with a 1.63% gain.
The banking sector was the best performer of the day, it was up by 3.69%.  Auto was next in line with a 2.13% gain. Capital Goods, metal and realty all showed gains.

FMCG and consumer durables were the only losers of the day, ending marginally in the red.

The National Stock Exchange's Nifty was up 1.54% to close with a rise of 77.10 points. 

SBI was the top gainer of the day, it was up 5.74% to close at Rs. 2212.00. Axis Bank and ICICI Bank were the other gainers of the day rising 5.51% and 4.46% respectively. Maruti, and Mahindra and Mahindra also rose over 4% each.

ONGC was the top loser of the day, dropping 1.90% to close at Rs1167.05. Idea was down 1.18% to close at Rs75.25 and Gail found its price deflating to Rs358, a loss of 1.10%. Suzlon and Powergrid also lost close to 1% each.

In all, there were 38 advances and 12 declines among the fifty stocks that make up the Nifty.