Market rallies on reform optimism; Nifty vaults 1.33%

The market overlooked deteriorating global economic situation and growth worries, and rallied on hopes of strong policy reforms as well as some liquidity easing measures from the apex bank amid encouraging earnings from corporates.

Moreover, a sharp rally in European stocks, after the euro area Finance Ministers' agreed to bailout Spain's troubled banks, eased concerns about eurozone debt crisis.

Consistent buying by foreign investors and a sharp recovery in rupee value further aided the overall sentiment.

After opening positive against the backdrop of weak Asian cues, the key index gradually picked up steam. The range -bound market suddenly took a jump in late afternoon trade on the back of frantic buying, mainly in FMCG, bank, oil & gas, auto, pharma and metal scrips, triggering a broad-based rally.

The 50-share Nifty fluctuated between a high of 5,348.55 and a low of 5284.55 before ending at 5,345.35, a net rise of 70.20 points, or 1.33 per cent, over the last close.

Axis Bank, JP Associates, RInfra, PNB, Bank of Baroda, Hindalco, ITC, Maruti, Jindal Steel and Sterlite industries were the top percentage wise gainers from the Nifty pack. ACC and Wipro were the only losers from the index.

The turnover in cash segment rose to Rs 9,513.91 crore against Rs 8,430.14 crore yesterday. In all, 6,429.42 lakh shares changed hands in 51,22,403 trades. Market capitalisation stood at Rs 61,18,894 crore.