Market rallies on rate cut hope, global cues; Nifty up 51 pts
Mumbai: Equities rallied for the second straight session following aggressive buying in rate sensitive stocks amid encouraging global cues with the benchmark CNX Nifty Monday surging 51 points and closing above the important 5,800 level on the National Stock Exchange (NSE).
Investors and fund houses displayed a strong appetite for sectors like banking, realty, auto on hopes of interest rate cut in the RBI's monetary policy meet on May 3. Infra, fmcg, energy and metal stocks too were in demand.
Continuing unwinding in Infosys and Wipro shares following the Bangalore-based IT giants' muted Q4 earnings and weak guidance resulted in heavy selling in technology counters, dragging the sectoral index sharply lower.
Trading began on a positive note after a long weekend following buoyant overseas sentiment as well as firm buying. The uptrend was maintained throughout the day though profit taking at higher levels, mainly in tech shares, capped gains.
Investors are betting on RBI undertaking an aggressive interest rate cut, drawing comfort from fall in inflation and improvement in macroeconomic fundamentals, traders said.
A renewed sense of optimim over improvement in global economic outlook and approval of Japan's recently launched aggressive monetary policy by the G20 Finance Ministers and Central Bank Governors from the world's largest economies also boosted domestic sentiments.
Most Asian markets witnessed a strong closing, with Japan's Nikkei rallying to multi-year highs on weakening currency amid aggressive stimulus measures. European stocks were trading firm in early trade.
The 50-share index hovered between a high of 5,844.85 and a low of 5,789.80 before finishing at 5,834.40, a sharp gain of 51.30 points, or 0.89 percent, over the last close.
Reliance Infra, Coal India, L&T, HDFC Bank, Indusind Bank, NMDC, ICICI Bank, BHEL, Tata Steel and HDFC were among top Nifty gainers. Key losers included UltraTech, Bajaj Auto, HCL, Infosys, ONGC, TCS, M&M, Cipla, IDFC and Ambuja Cement.
Gold loan firms and jewellery stocks also attracted good buying interest after their recent battering.
Turnover in the cash segment declined to Rs 11,539.15 crore from Rs 11,733.85 crore last Thursday. A total of 6,668.76 lakh shares changed hands in 60,91,161 trades. Market capitalisation stood at Rs 64,01,284 crore.