Nifty rebounds 20 pts on robust GDP data, RBI policy stance

The benchmark Nifty staged a smart rebound after a brief overnight fall, surging by around 20 points today as sentiment turned buoyant on the back of strong growth data even as the RBI affirmed its accommodative monetary stance while leaving rates unchanged.
Governor Raghuram Rajan left key interest rate unchanged at RBI's policy meeting, as widely expected, in view of retail inflation rising to 4-month high and the likelihood of capital outflows due to a possible US Fed rate hike later this month.
The central bank also kept the GDP projection unchanged at 7.4 per cent with a moderate downward bias.

Showing signs of revival in investment, country's economy grew much stronger than expected in the second quarter at 7.4 per cent from 7 per cent in the previous quarter, largely out-pacing China to become the fastest growing major economy.
However, growth rate of eight core infrastructure industries slowed to 3.2 per cent in October.
After a firm start, key indices moved in narrow range throughout the day and managed to end with good gains despite mid-session selloff.

Elsewhere, most Asian equities ended in positive territory, with the Nikkei breaking the 20,000 benchmark for the first time in three months despite sluggish Chinese macro data.

The 50-share Nifty index opened firmly higher at 7,958.15 and traded between a high of 7,972.15 and a low of 7,934.15 before ending at 7,954.90, a modest gain of 19.65 points, or 0.25 per cent.
On the sectoral front, metals jumped by a whopping 3.17 per cent, followed by FMCG (1.39 per cent), media (1.17 per cent), pharma (1.01 per cent), energy (0.55 per cent), IT (0.45 per cent) and realty (0.35 per cent).
The broader indices too outperformed benchmarks.
Auto fell (0.74 per cent), infra (0.62 per cent), Nifty banks (0.18 per cent) and PSU Banks (0.25 per cent).

Smart gainers were HDFC, ITC, HUL, Dr Reddy's, HDFC Bank, BPCL, Coal India, UltraTech Cement, Wipro, Lupin, Vedanta, Zee, Tata Steel, Hindalco, Cairn and Tech-M.
Among the laggards were Infosys, Tata Motors, Bharti Artel, Axis Bank, Adani Port, L&T, Maruti, ICICI Bank, Kotak Bank and Yes Bank.
Turnover in cash segment dropped to Rs 16,258.38 crore against Rs 29,535.03 crore yesterday. A total of 10,602.43 lakh shares changed hands in 75,12,248 trades. The market capitalisation of NSE stood at Rs 97,29,908 crore.