Drop in inflation, reform push calm market, Nifty up 28 pts
Bourses staged a recovery after a five-session downtrend as lower-than-expected inflation data along with a slew of reform measures boosted investor confidence with the benchmark Nifty rising by 28 points at the National Stock Exchange (NSE) today.
The smart pullback after yesterday's sell-off comes against the backdrop of easing inflationary fears as investors braced for a possible monetary easing by RBI.
The headline inflation dropped to a 10-month low of 7.24 per cent in November. The Central bank will meet on December 18 for its mid-term policy review.
Moreover, the rebound in October industrial output data, which showed a healthy growth of 8.2 per cent too indicates the economy is on a revival path.
Meanwhile, in a boost to reform process, the Government had yesterday cleared the Land Acquisition Bill, urea investment policy and also agreed to set up a Cabinet Committee on Investment to fast-track mega infrastructure projects.
After overcoming initial sluggishness, the market picked up momentum with buying in mid-afternoon after the release of November inflation (WPI) numbers. Though volatility frequently punctuated trading, the 50-share index managed to close with substantial gains.
Bank, metal, auto, realty, tech, capital goods and fertiliser stocks saw good demand. FMCG stocks also moved up after overnight plunge, but pharma sector saw profit selling.
The Nifty fluctuated between a high of 5,886.10 and a low of 5,839.15 before finishing at 5,879.60, a rise of 28.10 points, or 0.48 per cent, over the last close.
Bank of Baroda, Hindalco, Sesa Goa, Tata Steel, SBIN,
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