The market turned euphoric as investor fraternity gave a huge thumps up to the Centre's bold moves and determination to carry out another wave of economic reforms. Investors cheered after Samajwadi Party reassured the government of its support the day Trinamool Congress quit the UPA coalition.
Sending a strong message, the Government notified foreign investment in multi-brand retail, aviation and broadcasting sectors along with offering tax relief such as slashing withholding tax on overseas borrowings to 5 per cent from 20 per cent and also approved the Rajiv Gandhi Equity Savings Scheme (RGESS) for small investors.
After opening firm, the key index maintained its liquidity-driven momentum throughout the day and also hit the 5,700 mark before concluding a fascinating session.
Financials, FMCG, infrastructure, oil & energy, metal and auto counters witnessed a flurry of buying activities. But technology and pharma scrips encountered profit selling. The rupee soared against the dollar to close at over four-month high of 53.45, further adding to the positive momentum.
The 50-share Nifty soared to a high of 5,720 before finishing at 5,691.15, posting a steep rise of 136.90 points, or 2.46 per cent, over the last close.
Reliance Infra, Axis Bank, Sail, Bhel, Jindal Steel, JP Associates, Sesa Goa, IDFC, Sterlite Industries and PNB were the highest percentage-wise Nifty gainers. TCS, Infosys Tech, Dr Reddy's and Cipla were among the index losers.
The turnover in cash segment shot up to Rs 19,083.51 crore from Rs 12,406.66 crore yesterday. Overall, 11,099.39 lakh shares changed hands in 81,95,074 trades. Total market capitalisation stood at Rs 63,71,521 crore.
