Markets make a splash as Fed taper fear eases; Nifty up 67 pts

Stocks staged a dramatic strong rebound in a buying frenzy cheered by the RBI Governor's soothing comments and backed by global buoyancy on renewed hopes of continued stimulus from the Federal Reserve.
It sent the benchmark CNX Nifty surging by a healthy 67 points on the National Stock Exchange (NSE), snapping the seven straight days of slump.
The rally was largely attributed to the overnight promising comments from the Reserve Bank of India governor Raghuram Rajan to resolve the uncertainty and worries about the recent fall in rupee value.
He also expressed comfort about core inflation and narrowing current account deficit.

The domestic currency also recouped losses to gain for the second day.
Moreover, strong global sentiment against the backdrop of record closing in Wall Street and stimulus-supportive remarks from Federal Reserve Vice Chairman Janet Yellen, ahead of her testimony before the Senate as the candidate for the Fed's chairmanship, also seemed to allay investors' concerns about early tapering.

The beaten down financial stocks spearheaded the surge followed by auto, energy, fmcg, capital goods and metal related counters.
After a big gap-up opening, the key equity indices maintained it momentum throughout the session with the benchmark re-testing the support 6,100 level briefly before giving away some gains reacting to October wholesale inflation data which jumped to 7 per cent against 6.46 per cent previously, the highest in current financial year.

Hectic short-covering bounces alongwith wave of catch-up buying by investors from oversold state after recent sharp fall was the prime trigger for the rally, traders commented.
The 50-share index galloped by a hefty 66.55 points, or 1.11 per cent to finish at 6,056.15. The NSE bellwether had touched a high of 6,101.65 in early trade.
Axis Bank, Tata Motors, JP Associates, Tata Steel, Bank of Baroda, ICICI Bank, PNB, BPCL, IDFC and M&M were among the prominent index stock gainers.
Key laggards included Coal India, Cipla, Sun Pharma, Asian Paint, TCS, Lupin, Gail, HCL Tech, HUL and Dr Reddy.
The turnover in the cash segment dropped to 10,284.75 crore from 11,516.51 crore yesterday. A total of 5,278.42 lakh shares changed hands in 52,91,856 trades, while market capitalisation stood at Rs 65,25,987 crore.