After clinching new highs in early trade, indices towards the later part of the session held on to gains of almost 500 points on the Sensex, while being above 49270 levels. The gains were primarily due to strength in IT and auto pack, while metal packs lost sheen.
Among top gainers in early trade have been Tata Motors, HCL, Infosys, Wipro and HDFC, while laggards include Tata Steel, Adani Ports, Bajaj twins and Reliance.
At the current levels, markets seem to be stretched on the valuation front, said Mehta of Samco Group. Also, on improved sales that have inched higher by 11% on a year on year basis there is seen positive sentiment in the auto pack.
Since the pandemic, investors have been betting on stocks which have been not impacted due to the disruption and shares of depositories and exchanges gained up to 200% during this time.
Also, rupee recovered some losses at the later part of the trade after losing a great degree on strength in US yield.
Meanwhile, European indices were trading weak with losses up to 0.70 per cent.