Festive cheer lifts Dalal Street

Markets continue to lead the gains on back of gains in banking, oil & gas and metal space. The Sensex has risen 317 points to 19,117 and the Nifty has surged 93 points to 5733.

India Infoline research said, "India has outperformed the world and may continue to advance; the Nifty might cross 5700 soon and could even take a shot at 5800 if global cues are supportive." FII flows have not been an issue and won’t be one given the healthy prospects for the Indian economy according to India Infoline Research. Andrew Holland, CEO – Equities, Ambit Capital said," expect markets to break out of the range of 15,000 - 18,000 and touch 20,000 by Diwali on back of positive global environment." Ambit Capital has given a target of 23,000 for Sensex by March 2011.

Banking sector was in limelight today, SBI has surged 4.4% to Rs 3,116, HDFC and ICIC Bank have risen 3.8% each to Rs 654 and Rs 1097, Axis Bank and Punjab National bank are trading higher by 2.5% each. Bank Nifty has risen 3.1% to 11,801. Growth in banking sector is likely to continue, "moderate 25 basis points (bps) rate hike will not affect the banking sector as once capex cycle starts to pick up corporates will start borrowing," Holland said.

From the oil & gas space Reliance Industries is leading the gains, up 1.8% to Rs 975.85.  Holland said "One stock that will lead the markets higher is Reliance Industries on back of revaluation of assets," Other lead gainer in this space is ONCG, up 1.4% to 1,375. Ambit Capital has given a target of 1200 on Reliance by next one year.

Metals are also shining in trade today, Hindalco has risen 1.8% to Rs 187, followed by Tata Steel and Sterlite, up 1.5% each.