Market rallies on reform hopes, RBI action; Nifty tops 5,400

The 50-share Nifty hit a high of 5,435.55 before concluding at 5,431, a rise of 41 points, or 0.75 per cent, over the last close.

Against the backdrop of global buoyancy, trading began on a strong note with the key index reclaiming the 5,400 level on the back of firm buying in frontline scrips.

The overnight RBI decision to relax ECB norms for infrastructure firms to tap overseas markets weighed in early trade.

A weaker-than-expected factory output data failed to have much impact on investor sentiment as it had already been factored by the bourses. Index of Industrial Production (IIP) grew at 0.1 per cent in July compared 3.7 per cent in the same month last year.

The eagerly-waited verdict by the top German Court on euro-zone bailout fund provided the much-needed fillip to the market. Sidelining weak IIP data, the market maintained its momentum on optimism of rate cut by the RBI which is scheduled to carry out its mid-quarter policy review on September 17.

The central bank has resisted lowering interest rates on many occasions citing high inflation.

Technology, auto, metal, bank and oil & gas attracted good buying interest. Tata Motors, L&T, Jindal Steel, Tata Steel, Sail, Wipro, Dr Reddy's, Coal India, Sesa Goa and Sterlite were the top percentage-wise Nifty gainers.

Losers included Siemens, Cipla, NTPC, BHEL, Reliance Infra, Bajaj Auto, Gail, Hero Moto, BPCL and Bharti Airtel.

The turnover in cash segment rose to Rs 9,412.53 crore from Rs 8,147.90 crore yesterday. Overall, 5,834.79 lakh shares changed hands in 53,48,237 trades. Total market capitalisation stood at Rs 61,38,456 crore.