Nifty retraces 8,700-level; rate sensitives drive late surge

A late surge in frontline blue- chips including interest rate sensitive stocks steered the benchmark Nifty to retrace the significant 8,700-level on the National Stock Exchange (NSE).
Investors' continued optimism and confidence ahead of the Narendra Modi-led central government's first Union Budget amid anticipation of better-than-expected macro including gross predominantly fueled the rally.
After trading range-board for most part of the day, bourses witnessed a sudden spike of momentum toward the tail end session as traders and investors resorted to heavy buying at low levels. Positive headlines from global arena that Russia and Ukraine have agreed a ceasefire also bolstered trading sentiment.

Retail inflation data and Index of Industrial Production numbers will be released later in the day.
Elsewhere in the region, Japan's benchmark Nikkei index rallied to a two-month high on better-than-expected macro data and a weak local currency.
The broader 50-share Nifty galloped by 84.15 points, or 0.98 per cent, to end at 8,711.55 after fluctuating between a high of 8,732.55 and a low of 8,599.25 during the trade.

On the sectoral front, Infrastructure theme were the flavour for the second day on expectations of amid hopes of faster reforms and optimism over the upcoming Budget.
Auto, Technology, Healthcare, Energy, Financials, Realty and Metals also attracted good buying interest along with Mid-cap and Small-cap. However, FMCG counter witnessed profit-taking.

Defence stocks were in the limelight on reports that Mahindra & Mahindra is planning to buy a majority stake in Pipavav Defence & Offshore Engineering.
The smart index movers included, HDFC Bank, L&T, ICICI Bank, Infosys, Dr Reddys, ZEE, Axis Bank, Reliance, Maruti, Cipla, HDFC, Power Grid Corp, TechM, BHEL, HCL-Tech, Ambuja Cements, Hero Motoco, Lupin, Gail, Tata Motors, Wipro, Sesa Sterlite and Indusind Bank.
Among the notable losers were HUL, ITC, Asian Paints, SBI, Bharti Airtel, Bajaj Auto, PNB and Coal India.
Turnover in the cash segment shot-up to Rs 19,525.34 crore from Rs 16,777.19 crore yesterday. A total of 10,171.86 lakh shares changed hands in 83,63,078 trades. The market capitalisation at NSE stood at Rs 100,28,377 crore.