Mumbai: Riding high on the wave of "feel-good" factor, the benchmark Nifty reclaimed the crucial 8,600 milestone - its highest level in three months buoyed by the government's move to streamline the FDI structure as well as more reform measures to revive growth.
Sentiment remained upbeat fueled by optimism of a rate cut on the back of narrowing trade deficit data as well as sliding crude oil prices. Fading volatility in the global financial markets post Iran's historic nuclear deal with world powers and passage of the reform legislation by the Greek government last night to pave the way for the EU bailout predominantly provided the much needed boost and confidence to the rally.
The government on July 16 introduced a composite foreign investment cap by clubbing all forms of overseas investments to define sectoral limits even as signalled its resolve to get the 2015 land acquisition bill passed in Parliament. After a strong start, bourses maintained its bullish momentum throughout the session as investors went on buying spree reacting jubilantly to the positive news.
The broader 50-share Nifty of the National Stock Exchange (NSE) shot-up by healthy 84.25 points, or 0.99 per cent, to close at 8,608.05. It hovered between a high of 8,616.10 and a low of 8,542.90 during the trade.
Elsewhere, most Asian stocks ended on a strong note after China's Shanghai index staged a smart rebound and European equities are trading firmly higher ahead of the European Central Bank monetary policy decision.
There is a general feeling of euphoria in the markets and the sentiments are very positive to the key benchmark indices to new highs, a floor trader commented. Financial stocks were in limelight after the Cabinet approved a composite cap for foreign portfolio investment (FPI) and foreign direct investment (FDI).
Among the sectoral Bank Nifty topped its peers, surging 1.91 per cent followed by CNX PSU Bank 1.28 per cent, Pharma 1.24 per cent, FMCG 1.15 per cent, Energy 1 per cent alongwith Infra, Technology, Metal and Auto. While, mid-cap jumped 1.31 and small-cap was up 0.65 per cent.
Biggest index gainers included, Axis Bank, HDFC Bank, HDFC, Kotak Bank, Reliance, ITC, ICICI Bank, SBI, Sun Pharma, Yes Bank, Infosys, Idea, Bosch, TechM, Dr Reddys', Zee, HUL, BPCL, BHEL, Asian Paints, Cipla, HCL-Tech and Maruti.
Notable losers were M&M, TCS, Ultratech, Vedanta, Wipro Heromotoco and L&T. Turnover in the cash segment rose to Rs 15,424.55 crore compared to Rs 14,626.63 crore on July 15. A total of 8,029.99 lakh shares changed hands in 73,32,491 trades and the total market capitalisation of the Nifty stood at Rs 1,02,00,709 crs.
