Nifty recovers smartly, gains 84 points

Mumbai, Feb 11 (PTI) A sharp pullback rally gave sometemporary respite to the falling market as the benchmark S&PCNX Nifty recovered smartly to close above 5,300 mark at theNational Stock Exchange (NSE) here today.

The 50-share index witnessed huge oscillation between5,319.45 and 5,177.70 before concluding at 5,310.00, up 84.20points, or 1.61 per cent, over its previous close.

The session opened on a quiet note amid selling pressure.

The key index reacted negatively to lower Index of IndustrialProduction (IIP), which clocked 1.6 per cent for December 2010as compared to 18 per cent in the same month an year-ago. Itfell sharply to touch an eight-month low.

The market took a U-turn as traders resorted tolow-level buying on fundamentally strong and rich valuationshares, amid hectic short covering, fuelling a smart recovery.

Strong buying was noticed in index heavyweights, banking,capital goods and auto space, while FMCG and IT continued tobe in selling mode.

"Market had already factored in the dismal IIP data,though it reacted to the negative news and investors took theopportunity to buy from oversold positions," traders said.

JP Associates, IDFC, Tata Motors, Kotak Bank, Axis Bank,Reliance Infra, L&T, PNB, NTPC and SBIN were the top gainersfrom the Nifty pack.

Total turnover in the cash segment slipped to Rs13,776.82 crore from Rs 14,836.64 crore yesterday. A total of8,379.83 lakh shares changed hands in 70,70,595 trades. Themarket capitalisation stood at Rs 61,55,718 crore.