The bourses witnessed fresh bouts of frantic buying as policy measures to revive exports amid hopes of RBI monetary easing boosted investors sentiment with the benchmark Nifty surging by 50 points to close above the psychological 5,900 mark at the NSE on Wednesday.

Short-covering by traders ahead of tomorrow’s F&O expiry in the derivatives segment influenced the overall trading sentiments.

Banking, FMCG, capital goods, oil&gas and infra related counters attracted heavy buying interest, while technology witnessed some amount of profit—taking.

Trading commenced on a modest positive note with buying in select heavyweights, metal and realty stocks as volume remained low in the absence of any major overseas triggers as financial markets in US and European were closed for extended Christmas holidays.

Overcoming the initial sluggishness, the key index suddenly catapulted into a rallying momentum on the back of broad based buying spree, driving the benchmark above the important resistance zone. But profit—selling at higher level reduced some gains before concluding session.

On the policy front, in a bid to revive ailing exports and bring stability in the midst of global slowdown, government today announced additional incentives for exporters including extension of two per cent interest subsidy for one more year till March 2014.

The government also approved sale of its 12.5 per cent stake in Rashtriya Chemicals and Fertilisers Ltd (RCF).

Meanwhile, India’s second largest rating agency Credit Analysis an Research (CARE) got listed with a hefty premium of 25.33 percent over its issue price of Rs 750 before closing at Rs 922.55.

The 50—share Nifty rallied to an intra—day high of 5,917.30 before finishing at 5,905.60, registering a rise of 49.85 points, or 0.85 per cent, over the last close.

The turnover in cash segment rose to Rs 9,030.03 crore from Rs 7,834.16 crore on Monday.

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