Nifty hits new high on falling inflation, robust Q2 results

Indian markets bounced back sharply after a brief overnight fall bolstered by a round of upbeat earnings as well as fading inflation concerns, with the Nifty hitting a new closing peak of 8,389.90, gaining 32 points.
Across-the-board buying was seen in all sectors, except healthcare, even a mid-cap and small-caps supported the surge.
Overcoming initial volatility and sluggishness, key indices regained momentum after the wholesale price inflation dropped to a five-year low of 1.77 per cent in October, raising expectations of an earlier-than-expected rate cut by the Reserve Bank of India (RBI).
Beating market estimates, the State Bank of India (SBI) posted a robust 30.5 per cent growth in net profit at Rs 3,100.41 crore for Q2, further supporting the rise.

The fall in both retail and headline inflation coupled with a recovery in industrial output, is expected to put pressure on the RBI to lower interest rates in its forthcoming policy meet, a floor trader said.
The 50-share index fluctuated between a high of 8,400.65 and a low of 8,346.80 before ending at 8,389.90, a smart rise of 32.05 points, or 0.38 per cent, over its last close.

HDFC Bank topped the buying list on rumours that the Foreign Investment Promotion Board (FIPB) to mull a hike in the limit of foreign investment.
SBI was the second biggest gainer in the index pack on the back of better Q2 earnings followed by ONGC, Asian Paints, TCS, Hindalco, Gail, Infosys, Bajaj Auto, Sesa Sterlite, Coal India, Axis Bank, Heromotoco, ITC, Tata Steel, L&T and Wipro.

Notable losers included Sun Pharma, Hcl-Tech, Cipla, Tata Motors, Kotak Bank, HUL, Dr Reddy's and HDFC.
Turnover in the cash segment spiked to Rs 18,127.60 crore compared to Rs 17,095.66 crore yesterday. A total of 9,202.55 lakh shares changed hands in 79,90,317 trades, while market capitalisation stood at Rs 95,93,909 crore.