Market ignores RBI policy outcome; Nifty up 42 pts on buying

Equities rallied for the second straight session on broad-based buying spree amid supportive global cues, sidelining the RBI decision to keep key interest rates unchanged, as the benchmark CNX Nifty today spurted by 42 points on the National Stock Exchange.
Taking into account high inflation, rupee volatility and alarming balance of payment situation against the backdrop of deteriorating macro-economic fundamentals, the RBI left key rates unchanged in its mid-quarter monetary policy review.
The central bank pitched for creation of a conducive environment for investment and faster clearances of projects to boost faltering economic growth.
The rupee hit a life-time low of 58.98 against the dollar last week spooked by heavy capital outflow from equity and debt markets amid speculation of the US Federal tapering its massive stimulus programme.

Overcoming the initial nervousness and disappointment with regard to credit policy, the key index staged a smart recovery in afternoon on the back of good buying in almost all sectors and maintained the strong momentum till the end.
On the macro front, India's trade deficit jumped to a seven-month high of USD 20.14 billion last month from USD 17.8 billion in April, driven by high imports of gold and silver, adding pressure to already worsening current account balance.

Bullish global sentiment and hectic short covering helped the market to rebound in today's trade. Investors will watch the rupee movement going forward, a trader said.

FMCG, auto, bank, technology, oil & gas, infra and health-care stocks witnessed heavy buying.
Elsewhere in Asia, markets ended mixed in cautious trade ahead of Fed's two-day policy meet beginning tomorrow. European stocks were up in early trade.
The 50-share index hit a high of 5,854.90 and a low of 5,770.25 before finishing at 5,850.05, posting a sharp rise of 41.65 points, or 0.72 per cent, over its previous close.
BHEL, M&M, Bharti Airtel, Bajaj Auto, Reliance Infra, Axis Bank, Maruti, HCL Tech, Sun Pharma and SBIN were the key Nifty gainers. Notable losers included Ranbaxy, Hindalco, Sesa Goa, GAIL, NTPC, Jindal Steel, DRL, Power Grid, BPCL and NMDC.

Turnover in the cash segment slumped to Rs 8,482.54 crore from Rs 9,609.60 crore last Friday. A total of 4,897.02 lakh shares changed hands in 46,75,213 trades. Market capitalisation stood at Rs 63,23,083 crore.