Sustained buying in frontline stocks on the back of impressive first-quarter earnings of companies helped the domestic equity bourses gain on Wednesday, ignoring weak Asian cues. The 30-share Sensex of the Bombay Stock Exchange (BSE) ended at 15,903.83 points, rising 72.85 points, or 0.46%. The benchmark index was just 27 points away from the psychological 16k level at 15,973.10 points at one time, but pared gains soon after due to profit-taking in banking, metal and automobile stocks.

The broader 50-share Nifty of National Stock Exchange (NSE) closed at 4,694.15 points, gaining 0.29%, or 13.65 points, on Wednesday. Asian markets were subdued on Wednesday due to a third straight quarterly loss reported by Japan-based Toyota Motor Co, one of the world’s largest automakers. The Japanese Nikkei 225 slipped 1.18% while Shanghai Composite, Hang Seng, Straits Times and Taiwan Weighted were deep in the red, losing around 1.5%.

?Foreign funds flow continues to be positive on the back of better-than-expected first-quarter corporate earnings. The liquidity position is very strong domestically, driving the markets higher,? said Amitabh Chakraborty, president-equity at Religare Capital Markets, adding that investors should try to stay invested in the current market.

Credit Suisse, an international financial services group, has projected a higher capital inflow of $40 billion by way of portfolio investment, foreign direct investment and external commercial borrowing for the current financial year from its previous estimate of $20 billion following the recent election results.

The government’s willingness to take forward the economic reform process is also being received well by the market participants. In spite of better-than-expected corporate earnings, experts feel that monsoon will be a key factor that the markets would be looking forward to.

?At this point in time, markets are in a very strong position,? said Arun Kejriwal, managing director, Kejriwal Research & Investment Services Ltd, cautioning that some adverse development from the monsoon could play havoc in the market.

The breadth of the market remained positive throughout the trading session on Wednesday with 1,611 stocks gaining compared to 1,062 stocks that declined. According to the provisional data provided by stock exchanges, foreign institutional investors (FIIs) were net sellers to the tune of Rs 690.53 crore.

Nearing 16-k mark

• Foreign funds flow continues to be positive on the back of better-than-expected first quarter corporate earnings

• Experts caution that some adverse development from the monsoon could play havoc in the market

• Foreign institutional investors were net sellers to the tune of Rs 690.53 crore