NSE Nifty surges 1% to regain 5,300 mark on reform talks

Expectations of a series of reforms to rejuvenate the economy from new Finance Minister P Chidambaram along with sustained capital inflows strengthened the overall sentiment.

The Minister yesterday promised to unveil a roadmap to boost investment and economy by fine-tuning policies and put in place a stable and non-adversarial tax regime.

Strong global cues fuelled by actions of major Central banks to resolve the eurozone sovereign debt problems too weighed on Indian bourses.

Trading resumed higher amid cautiousness with buying coming in pharma, technology, metal and select frontline heavyweights. But gains were capped by profit-taking after overnight gains.

Overcoming the initial volatility, the key index witnessed a broad-based buying activity and climbed the important 5,300 mark. Aggressive buying was seen in rate sensitive counters like banking, auto, FMCG and technology.

The 50-share Nifty oscillated between a high of 5,350.10 and a low of 5,281.65 before ending at 5,336.70, a rise of 54.15 points, or 1.03 per cent, over the last close.

Tata Motors, IDFC, DLF, Ambuja Cement, Gail, TCS, Axis Bank, JP Associates, SBIN and ICICI Bank were the top percentage-wise gainers from the Nifty pack. Cairn, RIL, Hero MotoCorp, Power Grid, BPCL, Ranbaxy, Bharti Airtel, Sesa Goa, Sun Pharma and Asian Paints topped the losers' list.

The turnover in cash segment rose to Rs 9,862.12 crore against Rs 8,639.24 crore yesterday. In all, 5,529.23 lakh shares changed hands in 48,87,004 trades. Market capitalisation stood at Rs 60,46,751 crore.