Nifty soars 73 points on GAAR deferral, rate cut optimism, closes above 6000
A bullish start to the new earnings season, propelled by IT major Infosys, which surprised market with stronger-than -expected revenue guidance, and a spate of positive news fuelled the rally that saw the Nifty settle well above 6,000.
The Centre's move to defer implementation of General Anti-Avoidance Rules (GAAR), which seek to prevent tax evasion, till April 2016, exempt non-resident investors in FIIs from its purview and drop in headline inflation to a three-year low, all combined to trigger a rally despite a rise in retail price rate that breached the double-digit mark.
Headline inflation drifted to 7.18 per cent in December from 7.24 per cent in November. Retail inflation rose to 10.56 per cent in December from 9.90 per cent in November.
Trading got off to a firm start, buoyed by strong global sentiment and Infosys earning impact, and maintained the momentum ahead of the inflation data.
The benchmark picked up steam in afternoon after the lower inflation data brighten hopes rate cut by RBI at its January 29 meeting.
Against the backdrop of last weekend's dismal industrial production growth data and a fall in inflation may put some pressure on Reserve Bank to cut rates, traders said.
Technology stocks remained the flavour of the day followed by FMCG, financials, realty, oil &
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