Markets End Higher For Straight Fifth Session

The markets continued their good showing for the fifth consecutive session to end higher by more than a percent on the back of a drop in food inflation. The Sensex ended at 18,506, higher by 205 points and the Nifty ended comfortably above the crucial 5500 mark at 5546, up 64 points. The midcap index ended at 6793, higher by 58 points and the small cap index shut shop at 8321, up 74 points. The markets had started the day on a muted note in line with the cues from the global front and the subdued nature of the previous day's proceedings. Wall Street had risen marginally on Wednesday on stronger-than-expected Dell earnings and a flurry of deal news, but concerns about tensions between Israel and Iran gave investors reason to pause. The Dow had gained 36 points and Nasdaq had risen 12 points in overnight trades, while the Asian stocks had a mixed opening. Moreover, the benchmark indices had a lacklustre Wednesday on account of the Eid holiday and three consecutive days of gains had added 4.6% to the benchmark index. The bourses back home, however, charted an independent course from thereon. The Asian counterparts exhibited mixed trends in view of the simmering tensions in the Middle East, with the Hang Seng and Nikkei featuring among the gainers and the Seoul, Straits Times and Taiwan registering a negative close. And the European markets lacked a sense of direction, with the benchmark indices in London, France and Germany pottering around the previous day's closing levels, in mid-day trades. But our markets picked up momentum mid-way through the session to scale new intra-day highs with every passing hour and close at the high point of the day, with the easing in food inflation boosting the interest-rate sensitive banking and auto stocks.