Market ignores inflation data; Nifty soars 43 pts, scales 5700

Stocks extended surge for the fourth consecutive session amid renewed investor confidence as the benchmark CNX Nifty soared 43 points and closed above 5,700 mark in a choppy trade on National Stock Exchange today, ignoring a sharp spike in inflation.
Auto stocks, led by index heavyweight Tata Motors, which posted better-than-expected sales by its UK luxury car unit Jaguar Land Rover, spearheaded the rally.
Heavy buying in state-run oil & gas companies, on expectations of one-time diesel price hike to offset the rupee impact, alongside metal, financial and FMCG stocks, too, contributed to the upsurge.
Trading began on a positive note. However, the 50-share index surrendered early gains, reacting to a sharp spike in inflation - which shot up to 5.79 per cent in July from 4.86 per cent in June - and slipped into the negative zone.

Shrugging off inflation data, market witnessed a smart rebound in noon trade, taking support from firm European cues and on the back of buying in frontline stocks and concluded on a buoyant note.
Elsewhere, Asian markets ended mixed amid renewed worries over the Fed scaling back its stimulus measures following stronger than expected US retail sales data.

The Nifty hovered between a high of 5,754.55 and a low of 5,690.20 before finishing at 5,742.30, logging a smart gain of 43 points, or 0.75 per cent.
Tata Motors, Hindalco, BPCL, NMDC, DLF, ONGC, Cairn, GAIL, Tata Steel and ACC were the major Nifty gainers. Key losers included HCL Tech, Ranbaxy, BHEL, Dr Reddy's, Reliance Infra, Grasim, HDFC, Cipla, Bharti Airtel and Jindal Steel.

Turnover in the cash segment declined to Rs 11,407.43 crore from Rs 11,553.54 crore yesterday. A total of 6,734.94 lakh shares changed hands in 62,67,160 trades. The market capitalisation stood at Rs 61,33,947 crore.