Markets continued to trade firm in late morning deals, owing to positive cues from the global markets. The Sensex is up 234 points at 17,432. Nifty is up 68 points at 5,284.
Meanwhile in Asia, markets surged on optimism regarding the European financial crisis. Nikkei has added 2% to 8,740. Hang Seng has come off its highs and is up 1.8% at 20,035.
Continued concerns about weak rainfalls during the monsoon season as well as uncertainty about policy reforms may keep the gains in check going forward, feel analysts.
The rupee gained a hefty 51 paise to 55.24 against the dollar in early trade today at the Interbank Foreign Exchange market on increased dollar selling by banks.
The BSE oil & gas index is leading the gains - up 2.6% at 8,320. Auto, capital goods and realty indices have advanced 1.6% each.
Market heavyweight- Reliance is the top mover and accounts for a 73 points rally on the Sensex. ICICI Bank and Larsen & Toubro has contributed 40 points. Tata Motors and Tata Steel have gained 2.5-3.5% each, followed by Larsen & Toubro, Gail India and Sterlite. HDFC Bank, Hindalco, SBI and Bharti Airtel are also in green.
However, marginal weakness can be seen in Dr Reddys and TCS. FMCG shares are also weak with HUL and ITC trading flat.
Sugar stocks rose on high demand in the festive season. Shree Renuka Sugar added 5%, Balrampur Chini gained 5.5%, while Bajaj Hindustan and EID Parry jumped 2-3% each.
Glenmark Pharmaceuticals surged 3% at Rs 420 after the company said it has received final abbreviated new drug approval (ANDA) nod for montelukast sodium tablets.
BSE market breadth was fairly positive. Out of 2,451 shares traded, 1,608 shares advanced while 746 shares declined in trades.
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