Indian markets closed with strong gains in a special trading session Saturday. The BSE Sensex gained 77 points or 0.44 per cent at 17,761 while the Nifty advanced 17 points to end at 5,259.
The special session was held to test BSE's disaster recovery software. Trading volume was thin because it is a non-working day for majority of brokerages and FIIs.
On Friday, the Sensex had witnessed the biggest point gain in over two months on the back of a global rally Friday. Analysts hope markets to consolidate gains and move higher.
"We don't expect too much of a participation because of truncated session, but we should expect this liquidity driven rally to continue," Prakash Diwan of Networth Stock Broking told NDTV Profit.
Healthcare stocks led the gainers, rising 1.42 per cent. Drug maker Cipla saw strong buying interest after the High Court ruled in favour of the company in the dispute with pharma major Roche over a cancer drug. Cipla was the top Sensex gainer, rising 3.5 per cent.
Metal stocks saw over 1 per cent gains on the BSE. Shares in Vedanta group firm Sterlite Industries rose 2.3 per cent, while aluminum maker Hindalco advanced 2 per cent.
Metal stocks have been under the hammer because of a sharp fall in global commodity prices. However, they are likely to see gains over the next few days.
"The high beta pack is likely to drive the rally given that liquidity has come back in the markets," Diwan added.
On the Sensex 21 stocks closed higher. Heavy equipment maker BHEL was the top loser, down 1.1 per cent. State-run power producer NTPC and two-wheeler manufacturer Bajaj Auto were among the other big losers on Sensex.
A close above the 5,350 mark on the Nifty means a return of strength in markets. Analysts hope markets will see strong gains over the next few weeks.
"The short to medium term setups are encouraging. The bulls are back with a bang. 5,200-5,220 is a very strong support for markets and targets of 5,550-5,630 look possible," independent analyst Sarvendra Srivastava told NDTV Profit.
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