Nifty zooms 1.6% on rate cut hopes, export sops
Mumbai: A string of policy incentives to boost exports amid rate cut hopes triggered a fresh bout of buying at domestic bourses as the benchmark CNX Nifty Thursday soared by 94 points on the National Stock Exchange (NSE).
The key index re-tested the important 5,700 mark on the back of strong buying in banking, energy, auto, infra, FMCG and interest-rates related stocks and due to positive sentiment created by the Centre's sops to exporters and Special Economic Zones (SEZs) in its foreign trade policy.
India's exports grew for the third month in a row, rising 6.97 percent in March though on annual basis it fell 1.76 percent to USD 300.6 billion in 2012-13. Imports dipped by 2.87 percent to USD 41.16 billion in March, leaving a trade deficit of USD 10.31 billion from USD 13.5 billion in March last year.
Lower-than-expected retail and wholesale inflation numbers strengthened expectations that the Reserve Bank will cut interest rates in its May 3 credit policy review meet.
After a weak start following lacklustre global cues and modest selling pressure, the NSE benchmark soon regained momentum due to buying in heavyweights and firm European opening. It gathered strength and ended on a strong note.
Asian markets ended lower weighed down by steep overnight fall in US stocks amid lingering concerns about global economic growth.
European stocks were up in early trade after rebounding from previous session's sharp losses though some caution prevailed ahead of weekly jobless claims data.
The 50-share index hit a high of 5,794.35 and a low of 5,681.85 before ending at 5,783.10, posting a sharp gain of 94.40 points, or 1.66 percent, over the last close.
Among the top Nifty movers, Indusind Bank rallied 7.33 percent after posting a healthy 37.6 percent jump in net profit for Q4. IDFC rose 4.78 percent, Bharti 4.75 percent, Tata Motors 4.15 percent, Axis Bank 3.79 percent, L&T 3.71 percent, M&M 3.02 percent, Gail 3.01 percent, HDFC 2.90 percent and Ranbaxy gained 2.52 percent.
Notable losers included NMDC, HCL Tech, TCS, Cipla, Dr Reddy's, Grasim, Lupin, HUL, Power Grid.
Turnover in the cash segment dropped to Rs 11,733.85 crore from Rs 13,118.25 crore yesterday. A total of 5,978.11 lakh shares changed hands in 60,13,814 trades. Market capitalisation stood at Rs 63,46,619 crore.