Mumbai: The benchmark CNX-Nifty vaulted by a hefty 73 points to close at multi-year peak at National Stock Exchange (NSE) Monday as markets hailed the government's decision to defer implementation of the controversial tax laws GAAR amid hopes of rate cut by the month-end.
A bullish start to the new earnings season, propelled by IT major Infosys, which surprised market with stronger-than -expected revenue guidance, and a spate of positive news fuelled the rally that saw the Nifty settle well above 6,000.
The Centre's move to defer implementation of General Anti-Avoidance Rules (GAAR), which seek to prevent tax evasion, till April 2016, exempt non-resident investors in FIIs from its purview and drop in headline inflation to a three-year low, all combined to trigger a rally despite a rise in retail price rate that breached the double-digit mark.
Headline inflation drifted to 7.18 percent in December from 7.24 percent in November. Retail inflation rose to 10.56 percent in December from 9.90 percent in November.
Trading got off to a firm start, buoyed by strong global sentiment and Infosys earning impact, and maintained the momentum ahead of the inflation data.
The benchmark picked up steam in afternoon after the lower inflation data brighten hopes rate cut by RBI at its January 29 meeting.
Against the backdrop of last weekend's dismal industrial production growth data and a fall in inflation may put some pressure on Reserve Bank to cut rates, traders said.
Technology stocks remained the flavour of the day followed by FMCG, financials, realty, oil & gas, metal and capital goods. Pharma and auto stocks saw profit-taking.
The 50-share Nifty galloped to a high of 6,036.90 before concluding at 6,024.05, posting a handsome gain of 72.75 points, or 1.22 percent, over the last close.
DLF, ONGC, HCL Tech, Jindal Steel, Infosys, PNB, JP Associates, HDFC, Ambuja Cement and TCS were the top Nifty gainers. The laggards included Lupin, Bajaj Auto, Maruti, Sun Pharma, Cipla, Power Grid, Ranbaxy, Tata Motors and Ultratech.
Turnover in cash segment dropped to Rs 12,702.55 crore from Rs 14,023.78 crore last Friday. A total of 6,706 lakh shares changed hands in 58,56,512 trades. The market capitalisation stood at Rs 69,11,3993 crore.
First Published: Monday, January 14, 2013, 20:15