Earnings optimism fuels rally; Nifty ends at one-week high
Mumbai: Ignoring weak fundamentals, market extended gains for the second day on consistent buying amid optimism over better corporate earnings as the benchmark CNX Nifty today rose 35 points on the National Stock Exchange.
Technology stocks gained ahead of Infosys' Q4 results Friday and spearheaded the rally, which led the index to hit one-week high. The Bangalore-based software giant surprised the Street in Oct-Dec after several dismal quarters. Firm buying was also seen in FMCG, financials, auto and pharma shares.
Trading began on a positive note led by frontline heavyweights and supported by buoyant global sentiment with the key index retracing the 5,600 mark in early trade.
Market turned volatile in late afternoon on the back of some short selling and slipped into negative zone briefly before regaining momentum to end with good gains. However, selling in metal and energy counters capped the gains.
Investors are not convinced by Wednesday's dramatic pullback rally which lifted the NSE benchmark above the crucial 5,550 support level. Market witnessed value buying before the fourth quarter financial results beginning Friday on optimism of good numbers, traders said.
Globally, Asian markets spurted on the back of overnight record closing at Wall Street and positive data from China, the world's second-largest economy.
The Nifty oscillated between a high of 5,610.65 and a low of 5,542.85 before ending at 5,594, a gain of 35.30 points, or 0.64 percent, from the last close.
Among the key Nifty gainers, DLF jumped 5 percent, Tata Motors 3.79 percent, Lupin 3.71 percent, Indusind bank 3.63 percent, Infosys 3.59 percent, ICICI Bank 3.57 percent, HCL Tech 3.40 percent, Ranbaxy 2.47 percent, Cipla 2.01 percent and L&T rose 1.78 percent.
Key losers included Bharti Airtel, Tata Steel, NTPC, Grasim, HDFC, Bajaj Auto, IDFC, Kotak Bank, RIL and RInfra.
Turnover in the cash segment surged to Rs 10,387.71 crore from Rs 9,616.09 crore Wednesday. A total of 5,756.53 lakh shares changed hands in 53,82,805 trades. Market capitalisation stood at Rs 61,87,325 crore.