Nifty gains 25 points; auto stocks in fast lane on excise cut

Stocks rose in a choppy trade on the National Stock Exchange (NSE) today as reduction in excise duty for automobiles and some other proposals in the interim Budget boosted sentiments.
The benchmark Nifty posted modest gains in a session dominated by range-bound trade and volatility on a day when Finance Minister P Chidambaram presented the last Budget of UPA-2.
Sops for some other industries and commitment to contain fiscal and current account deficits was well received by the stock market, which was not expecting major policy-related surprises in the interim Budget.
Metal, energy, realty stocks witnessed profit-booking. Tata Power spurted 4.60 per cent on firm buying interest, while banking counters also saw rally with ICICI Bank up 2.38 per cent.

Auto shares surged as the Government cut the excise duty from 12 per cent to 8 per cent on small cars and bikes, and from 30 per cent to 24 per cent for SUVs. M&M shot up 2.62 per cent and HeroMoto gained 1.83 per cent.
Pharma scrips also saw buying interest with Dr Reddy's Lab gaining 2.46 per cent.

The 50-share Nifty traded between a high of 6,080.40 and a low of 6,038.30 before ending at 6,073.30, up 24.95 points, or 0.41 per cent, from its previous close.
Other gainers were IDFC, Lupin, Maruti, IndusInd Bank, and HDFC Bank. NMDC, Coal India, DLF, Hindalco and Reliance registered losses.

Turnover in the cash segment declined to Rs 8,230.85 crore from Rs 9,845.07 crore last Friday. A total of 4,064.07 lakh shares changed hands in 42,31,992 trades, while the market capitalisation stood at Rs 65,62,221 crore.