Investors cheered the Government's bold move to hike diesel prices and slash fuel subsidies by limiting supply of subsidised LPG cylinders to curb ballooning deficit. Market also received a huge boost on hopes of hike in FDI cap and stake sale in PSUs (both cleared after market hours).
Buoyancy swept across the global financial markets after the Federal Reserve unleashed a wave of aggressive economic stimulus programme to shore up US growth.
Domestic equity markets capitalised on global buoyancy with finacials, metal, oil & gas, auto, technology and infra stocks rallying over by 2 to 4 per cent.
On the currency markets, rupee flared up by 113 paise to end at 2-1/2-mth high of 54.30 against the US dollar.
After a strong opening, the key index maintained the bullish momentum throughout the day, even sidelining inflation data before wrapping up an eventful trading day. Inflation rose to 7.55 per cent in August from 6.87 per cent in July.
The RBI's mid-quarter credit policy meet on Monday acquires significance against the backdrop of stubbornly high inflation as the Central bank has been clear that it wants the Government to cut down fiscal deficit before giving any interest rate guidance, traders commented.
Also Read
The 50-share Nifty vaulted to a high of 5,586.65 before concluding at 5,577.65, a rise of 142.30 points, or 2.62 per cent, over the last close.
Jindal Steel, Hindalco, DLF, JP Associates, Axis Bank, Sesa Goa, SBIN, Bank of Baroda, RIL and L&T were top percentage-wise Nifty gainers. Ranbaxy, NTPC, Dr Reddy's, BPCL, HCL Tech, ITC, ONGC, TCS and Cipla settled lower.
The turnover in cash segment shot up to Rs 14,855.73 crore from Rs 8,906.63 crore yesterday. Overall, 8,031.13 lakh shares changed hands in 69,39,227 trades. Total market capitalisation stood at Rs 62,38,007 crore.