Experts, however, cautioned market performance could hinge on foreign inflows, as liquidity with domestic investors is likely to remain tight on account of the financial year ending.
“We are not yet out of the woods. For the rally to sustain, we will need continuous follow-up buying,” said Manish Sonthalia, vice-president and fund manager, Motilal Oswal Asset Management Company.
“A lot of mid-cap stocks have got liquidated in the recent crash. The liquidity in the market is tight and it will become even tighter post March 15. All these factors will weigh on the market,” he added.
The S&P Sensex today rose 265 points, or 1.4 per cent, to 19,143.17, led by gains in beaten down metal stocks as investors thought recent losses were excessive.
Meanwhile, the 50-share Nifty closed at 5,784, up 85.75 points, or 1.5 per cent, the most since November 29, 2012.
The gains were in line with the global markets that gained sharply on the hope central banks globally will continue to power growth by loose monetary policy and other stimulus measures.
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