A tail-end buying surge led by beaten-down banking stocks amid optimism about corporate earnings sent the Indian markets sharply higher today as the benchmark CNX Nifty zoomed 65 points and closed above the 6,000 level on the National Stock Exchange.
Mumbai: A tail-end buying surge led by beaten-down banking stocks amid optimism about corporate earnings sent the Indian markets sharply higher today as the benchmark CNX Nifty zoomed 65 points and closed above the 6,000 level on the National Stock Exchange.
Frantic buying in banking stocks followed by FMCG, energy, healthcare, technology, metal and auto counters helped the key index to post smart gains and retrace 6,000 mark.
Heavy bouts of short-covering, after recent sharp sell-off due to RBI's liquidity tightening measures to curb rupee volatility, and better-than-expected Q1 earnings from Axis Bank sparked a rally in banking space. The leading private sector lender reported a 22 percent growth in net profit to Rs 1,408.93 crore.
After a lacklustre opening in the absence of any supportive cues, the 50-share index mostly traded in a tight range. It gathered momentum in late afternoon on the back of renewed buying interest and notched up handsome gains.
Meanwhile, other Asian stocks ended mixed amid ongoing uncertainty over future of US monetary stimulus and worries about deteriorating growth outlook of China, world's second largest economy. Japan's Nikkei index hit an eight-week high.
The Nifty fluctuated between a high of 6,051.10 and a low of 5,974.55 before finishing at 6,038.05, a sharp rise of 64.75 points, or 1.08 percent, over its last close.
ONGC, Reliance Infra, Asian Paints, Axis Bank, Bank of Baroda, BHEL, Hero Moto, DLF, Cairn and PNB were among the prominent gainers from the Nifty pack.
Notable losers included HCL Tech, M&M, TCS, NTPC, Sesa Goa, UltraTech, Bajaj Auto, ACC and Coal India.
Turnover in the cash segment dropped to Rs 12,426.07 crore from Rs 13,805.05 crore yesterday. A total of 5,892.44 lakh shares changed hands in 63,69,665 trades. The market capitalisation stood at Rs 64,28,106 crore.