Sensex rally 496 points, Nifty off its life-time highs

Traders gave stamp of approval BJP's massive mandate in UP elections with Sensex surging sharply by 496 points to close 29,442.63, while the broader Nifty hitting all time closing highs at 9,087.00.

The Prime Minister Narendra Modi landslide victory with final tally of 312 echoed in stock market with NSE marking historic life-time highs at 9122.75 surpassing its previous peak of 9,119.20 on March 4, 2015, before paring some gains to new closing highs at 9,087.00. Meanwhile, the sensex rallied 615.70 points to 29,561.93 during intra-day before the news of a sharp spike in WPI inflation which shot-up to 39-month high at 6.55 per cent hovered the trading momentum.

The Wholesale Price Index based inflation, reflected the annual rate of price rices surged because of costlier food and fuel items. The market resumed after holiday-pause due to 'Holi-festival" traded strong as investors bouyed by UP election results as well as positive news in macro-front, with January IIP rising 2.7 per cent on better performance by the capital goods segment, in a way apparently shrugging of the impact of demonietisation.

It was also supported by continued FII inflows, zooming rupee which soared 42 paise to 66.18 in early trade.

Most of sectoral indices rallied, led by CapitalGoods, Realty, Consumer Durables, Financials, Banking and Industrials. While Telecom and Metal stocks saw profit- booking.

The 30-share Sensex settled day by gaining 496.40 points, or 1.71 per cent, at 29,442.63. The broad-based Nifty ended garnered 152.45 points, or 1.71 per cent, at 9,087.00 registering new closing highs.