The key benchmark indices rose to 14-month highs as most of the global markets extended the July rally into the first trading session of August. The Sensex advanced 253 points to close at 15,924 while Nifty added 74 points to end at 4711.

The market rally has been supported by great set of numbers from corporate India and the continued liquidity flow, said Yogesh Kalwani, Head Advisory, BNP Paribas Wealth Management.

However, some market participants feel that the markets have run up very fast and it needs to time to catch up with the fundamentals. “The valuations look stretched at this stage and correction can be expected in the near future,” said IV Subramaniam, CIO of Quantum Advisors.

Underpinning the gains in the global markets was a US government report on Friday that showed the contraction in the US economy slowed to 1 per cent in the second quarter, adding to hopes the recession is nearly over. The data also beat expectations with analysts forecasting a 1.5 percent drop.
Surveys showing that manufacturing in the world's No. 3 economy China is expanding provided more evidence of economic revival and lifted Chinese shares to a 14-month high.

Auto and realty counters led the gains on the bourses today. The BSE auto index rose 4.6 per cent. Bharat Forge and Amtek Auto zoomed over 17 per cent each. M&M and Bajaj Auto rose over 6.5 per cent each.

The realty index on the BSE soared 4.2 per cent and Phoenix Mills, Mahindra Lifespace Developers were the biggest gainers in the group. The stocks rose over 8 per cent each.

The BSE metal index gained 3.4 per cent and the power index was up 2.2 per cent.

In the Sensex pack, 26 stocks advanced while four counters fell. Hindalco was the top gainer. The stock rose 8 per cent to end at Rs 108. M&M, RCom and BHEL were the other main gainers, up over 5 per cent each.  Infosys, M&M and ITC made new 52-week highs today.

source: NDTVPROFIT