Bargain hunting keeps market moving higher; Nifty up 22 pts

Bargain hunting keeps market moving higher; Nifty up 22 pts Mumbai: Equities got some respite from overnight sharp sell-off weighed by RBI policy inaction as firm buying in healthcare, financial and auto stocks led the benchmark S&P CNX Nifty to regain 22 points at National Stock Exchange (NSE).

The market gave the policy thumbs-down as investors expressed displeasure and dismay triggering widespread liquidation with the key index plunging by over 1.19 percent.

The Reserve Bank of India (RBI) on Tuesday maintained its status-quo on repo rate as stubbornly higher inflation citing as a prime reason while sidelining worries over slowing economic growth outlook.

After a listless opening the key-index mostly traded in a narrow range amid selling in select heavyweights and banking stocks, though firm buying in pharma and some low level buying cushioned the fall.

The directionless market gradually picked up steam in late afternoon trade as the sentiment got brightened with the benchmark climbing above the 5,600 level following positive European opening as well as supported by Asian cues. The market finally managed to consolidate its gains and closed modestly higher.

A lot of buying activities were seen in mid and small caps resulting respective indices to outperform.

"Some bargain hunters might have stepped in to buy at lower levels after yesterday's sell-off amid short-covering helping the recovery," traders commented.

Pharma, bank, auto, metal and technology stocks were in keen demand, while fcmg, capital goods, infra space remained under selling pressure.

The 50-share Nifty fluctuated between a high of 5624.40 and a low of 5,583.05 before ending at 5,619.70, registering a gain of 21.80 points, or 0.39 percent, over its previous close.

Hindalco, Maruti, Cipla, Tata Motors, Sesa Goa, Jindal Steel, Dr Reddys, Sun Pharma, DLF and SBIN were the top smart movers from the Nifty. The key laggards included Reliance Infra, GAIL, BHEL, ONGC, Ultracemco, Asian Paint, L&T, ITC, Hinduilvr and Tata Steel.

The turnover in cash segment rose to Rs 9,949.66 crore from Rs 10,439.41 crore yesterday. Overall, 5,991.24 lakh shares changed hands in 51,05,681 trades. Total market capitalisation stood at Rs 63,37,676 crore.

PTI