Oil reform buzz fires up market; Nifty zooms 38 points
Mumbai: Strong buying momentum led by energy heavyweights amid hopes of some radical policy reforms in the oil sector boosted investor confidence as the benchmark S&P CNX Nifty surged 38 points to reclaim 5,900 at NSE on Friday.
The market sentiment turned positive on indications that the Government may gradually increase prices of diesel and kerosene to cut subsidies and rein in fiscal deficit.
The rally was mainly spearheaded by energy stocks like Reliance Industries, ONGC and BPCL, which rose by over by 2.5 per cent amid huge volumes. Good buying was also seen in technology and FMCG stocks.
Trading began on a firm note after overnight sell-off with most buying coming in oil-related stocks and some specific scrips supported by positive global cues. Despite some profit-taking in financials and pharma stocks, the key index managed to close above the 5,900 level.
Globally, amidst concerns over the ongoing fiscal cliff saga, most Asian markets ended up with Japan's Nikkei jumping to a 21-month high, buoyed by hopes that the world?s third-largest economy would continue to engage in aggressive monetary easing measures under a new Government.
The 50-share S&P CNX Nifty fluctuated between a high of 5,915.75 and a low of 5,879.50 before ending at 5,908.35, a rise of 38.25 points, or 0.65 per cent.
Reliance, ONGC, BPCL, Wipro, Infosys, TCS, IDFC, Cairn, Hero Moto and Sesa Goa were the top Nifty gainers. Key laggards included Axis Bank, SBIN, M&M, HDFC Bank, Sun Pharma, Tata Steel, Dr Reddy's, Lupin, Tata Motors and Grasim.
The turnover in cash segment fell sharply to Rs 9,706.43 crore from Rs 13,809.02 crore yesterday. Overall, 6,765.04 lakh shares changed hands in 46,54,665 trades. Total market capitalisation stood at Rs 67,44,702 crore.