Nifty closes above 8,400 on strong global cues

Market took comfort from the government's move to put foreign portfolio investment (FPI) taxation on hold, as the benchmark BSE Sensex finished the day at 27,258 with minor gains and the Nifty got back to the top of the crucial 8,400 mark amid firm global leads.

But, policy uncertainties about the incoming Donald Trump administration in the US and profit taking by investors towards the end of the session saw the indices come off their day’s highs.

The Sensex opened higher, but closed at 27,257.64, a gain of 21.98 points, or 0.08 per cent. The 50-share Nifty, too, recovered 19 points, or 0.23 per cent, to close at 8,417 after moving in a range of 8,460.30 and 8,397.40.

The rupee lost ground against the dollar as it ended at 68.08, which restricted early gains. Foreign investors turned net buyers of Indian equities for the first time this month yesterday, as per provisional figures.

“Market had started on a positive note due to government’s suspension of FPI taxation. But, this trend could not be continued as emerging markets are consolidating ahead the swearing ceremony of Trump, which is slated on Friday.

Additionally, market expects a status quo at tomorrow’s ECB policy meeting," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

The Sensex had dropped by 52.51 points on Tuesday after IMF sharply lowered India’s GDP estimates.

The recovery was supported by gains in Tata Steel (up 2.95 per cent), HUL (2.86 per cent) and ONGC (1.51 per cent).