Mumbai: Heavy across-the-board buying fuelled by optimism over interest rate cut by RBI led the benchmark CNX Nifty to soar by a massive 69 points and hit three-month high on the National Stock Exchange (NSE) Thursday.
Expectations of an aggressive interest rate cut by RBI at its policy review meeting tomorrow and the Centre's recent decision to cut tax rates for foreign investors on interest income from investments in Government bonds and corporate debt to encourage capital inflows boosted market sentiment.
Frantic buying in FMCG, financials, technology, infra, energy and auto stocks helped the 50-issue benchmark to trade above the important 6,000 level briefly in early trade.
Brushing off initial sluggishness due to disappointing Q4 earnings from Bharti Airtel and weak global cues, market gradually picked up momentum on the back of buying spree led by rate sensitive counters. Some profit-taking towards the end pulled down the index, which closed just shy of 6,000 mark.
Globally, financial markets across Asia witnessed sell -off on renewed concerns about the economic outlook for major economies following disappointing US and China manufacturing data. European stocks were lower in afternoon trade ahead of interest rate decision from ECB.
The Nifty oscillated between a high of 6,019.45 and a low of 5,910.95 before ending at 5,999.35, posting a sharp rise of 69.15 points, or 1.17 percent, over the last close.
Reliance Infra, HCL Tech, TCS, JP Associates, M&M, L&T, IDFC, Power Grid, Infosys and RIL were among top Nifty gainers. Key losers included Cairn, HUL, Hero Moto, Hindalco, Tata Motors, Bajaj Auto, BHEL, Dr Reddy's, Gail and Bharti.
Turnover in the cash segment improved to Rs 12,651.92 crore from Rs 12,457.36 crore on Tuesday. A total of 6,226.58 lakh shares changed hands in 68,80,070 trades. Market capitalisation stood at Rs 65,55,067 crore.
First Published: Thursday, May 02, 2013, 09:48