Benchmark indices managed to clock marginal gains amid consolidation on Friday as investors remained cautious ahead July industrial output and August CPI data due later in the day. (IIP came in at 0.5 percent versus 3.9 percent M-o-M and CPI at 7.8 percent versus 7.96 percent)

The 30-share BSE Sensex reclaimed 27000 level, up 65.17 points to close at 27061.04 and the 50-share NSE Nifty too climbed above 8100-mark, rising 19.80 points to 8105.50. The broader markets continued to hold positive momentum with the BSE Midcap and Smallcap indices gained 0.2 percent 0.5 percent, respectively.

The consolidation may continue in near term but sharp upside won’t be possible at least till the government dilutes stake in big names ONGC and Coal India, say experts, adding the 8150 will act as a resistance and 7800 as a strong support.

“Largecaps have so far had a good run but with these sorts of largecap paper supplies coming through, even though this rally at the moment looks unstoppable that (paper supplies) might be a trigger that forces market to stall here if not move lower,??? said Gaurav Mehta, VP – Institutional Equities, Ambit Capital. He feels from a very near-term point of view, this market is getting a bit too complacent.

As far as medium to long term perspective is concerned, the market is in a structural uptrend. For the last 12-15 months, he has been very positive on Indian equities and he continues to remain so for the next 12 months as well.