NSE Nifty gained further and has managed to gain 91 points compared to previous close. BSE Sensex gained 303 points.

Reliance Infra was major gainer with stock trading Rs 34 higher at Rs 566. The stock touched an intraday high of Rs 571.7 on BSE. Other gainers included HDFC, Reliance Communications, SBI, ITC, NTPC, L&T, Sterlite and ONGC.

Jim Walker of Asianomics feels that India will outperform. However, Jim expects Indian GDP to remain in range 3-5%. Jim also expects that there may be further sell off in Indian markets. The valuations will become attractive and will offer decent returns.

Tata Power touched an intraday high of Rs 705. The stock however declined from day’s high and was trading at 695.

Networth Stock Broking has suggested a strong resistance for NSE Nifty in 3000-3100 range. US Stock markets ended positive and Asian markets are expected to open strong on Monday. Indian Stock markets may also open with a wide upward gap on Monday.

As per figures from exchange, stocks worth Rs 4.5 crore were sold by FII in cash market on Friday. Domestic Institutional investors sold stocks worth Rs 184 crore in cash market.

Network Stock Broking analysts believe 2510 and 2492 as a strong support level for NSE Nifty.

Amid a cautious start, Indian equities continued to trade positively but on a flat note.

Global signals are fairly positive and there are expectations that the government will shortly declare a strong stimulus package to boost up the financial system.

Realty, consumer goods and banking stocks went up, whereas consumer durables and metal stocks turned down.

BSE Midcap and Smallcap index gained 0.65% and 0.61% respectively.

After a smart opening today, Indian equities slipped into the negative terrain due to heavy selling pressure in select IT, realty, auto and FMCG stocks.

However metal and consumer goods stocks gained ground. BSE MIdcap and Smallcap index rose 0.55% and 0.27% respectively.

At 10.50 a.m., the 30-share index Sensex lost 95.21 points at 8,644.03 after hitting a high of 8,854.81 and a low of 8,620.71.

Indian stock markets have declined a lot during the last 10 months and capitalists have lost faith in the equities. But the golden rule of investing still remains unbroken, that in the long run companies with well-built fundamentals and talented management will always provide handsome returns.

The existing negative reaction has taken the rate of many shares much below their fair value. These shares cannot stay at such low levels and are expected to bounce back to somewhere closer to their fair value.

IT, pharma and select realty, consumer durables and power stocks trade strongly while the benchmark BSE index Sensex continues to languish in the negative terrain with a sharp loss on account of heavy selling activity in Reliance Industries, Reliance Communications, Bharti Airtel, ACC, Tata Steel, SBI and Grasim Industries.

At 12:28 p.m., the Sensex lost 191.25 points 10,439.87, while the Nifty stood at 3087.30, down 54.80 points.