Ignoring inflation cues,Nifty back at 5500-mark

Session commenced on a firm note gaining support from positive global peers and select low level buying frontline counters,gained momentum to cross the psychological 5,500 mark and traded higher.

The mid-afternoon session encounterd heavy selling after the higher-than-expected headline inflation data got released,which rose to 9.06 per cent in May as against 8.66 per cent on a month on month basis,fearing a hike in interest rate and subsequent worries over economic slowdown.

But,surprisingly the market recovered in afternoon trade on the back of buying in banking,FMCG,capital goods,pharma and technology counters to end with a modest gain.

Investors are trading very cautiously and not willing to take huge positions ahead of the RBI policy,which is scheduled on June 16,traders said.

Reliance Infra,Axis Bank,Bajaj Auto,Reliance Capital,Jindal Steel,HCL-Tech,Rpower,TCS,ITC and Sun Pharma were the top gainers from the Nifty.

However,Tata Motors,Hindalco,IDFC,Reliance,Cipla,HDFC,Ambuja Cements,Cairn,Maruti and Infosys registered loses.

Turnover in cash segment rose to Rs 10,200.94 crore from Rs 8,686.11 crore yesterday. A total of 5,066.88 lakh shares changed hands in 52,17,050 trades. The market capitalisation was Rs 65,45,380 crore.