Riding on interest rate cut hopes and frenzied buying spree, the benchmark CNX Nifty skyrocketed by a staggering 151 points and settled at 28-month high on the National Stock Exchange (NSE) on Wednesday.
Mumbai: Riding on interest rate cut hopes and frenzied buying spree, the benchmark CNX Nifty skyrocketed by a staggering 151 points and settled at 28-month high on the National Stock Exchange (NSE) on Wednesday.
The 50-share index pierced through all resistance levels and surpassed the important 6,100 mark to close at 6,146.75, a peak not seen since January 3, 2011.
The stellar rally seems to have its roots in RBI's "happy" remark on falling inflation.
"We certainly will take note of the softening of inflation and the external payments situation in the next mid-quarter policy statement on June 17," RBI Governor D Subbarao said in Frankfurt. The apex bank chief said he was also "happy" to see that inflation has fallen below 5 percent.
Rate-sensitive counters, led by banking stocks, were on fire. The BANK Nifty zooming by a massive 494 points. Auto, energy, pharma, infra and metal counters, too, saw strong buying interest. Many stocks scaled fresh 52-week highs.
Buoyant global equities, which are trading at fresh highs on back of liquidity provided by major central banks, also provided fillip to the domestic sentiment.
After a good start, the market maintained its spectacular rally as investors showed strong appetite for stocks and closed with handsome gains.
The Nifty galloped by a massive 151.25 points, or 2.52 percent over its last close, to finish at 6,146.75. The index scaled a peak of 6,157.10 in early trade.
State-run Punjab National Bank was the top Nifty gainer, rallying by over 7 percent. Other smart movers included Reliance Infra, IndusInd Bank, Kotak Bank, DLF, IDFC, HDFC, L&T, Lupin and SBIN. Power Grid, UltraTech and Cairn were the only notable losers from the index.
Turnover in the cash segment jumped to Rs 12,896.34 crore from Rs 8,922.57 crore yesterday. A total of 6,947.96 lakh shares changed hands in 62,489,32 trades.