Markets continue to trade strong

Markets traded in the green, albeit of the morning highs on Asian cues and gains in the metal and realty space. Easing domestic political tension also helped to buoy the markets.

The Sensex touched a high of 18,455 after opening at 18,277. The index thereafter pared some gains and was trading at 18,394.

The Nifty gained 44 points at 5,507.

Markets in Hong Kong, Japan, South Korea, Taiwan and Singapore rose by between 0.16% to 0.85% each. Japan posted a current account surplus of 461.9 billion yen in January 2011, down sharply from the surplus of 1.195 trillion yen in December 2010. Japan's Nikkei was up 33 points at 10,538.

The Dravida Munnetra Kazhagam (DMK) on Monday put on hold the resignation of its six ministers from the UPA government in a dramatic new turn with the party and Congress engaged in hectic negotiations to sort out their seat-sharing problems in Tamil Nadu. The final decision would be taken later today.

High crude oil prices remain a cause for concern for India which imports majority of its crude oil requirements.

BSE metal index gained 1.2% to 15,787. Bhushan Steel in the metal space shone with gains of 3% at Rs 414. Hindustan Zinc, Tata Steel, Nalco and JSW Steel were up on hopesof a possible price rise. Sesa Goa, Jindal Steel and Sterite jumped over 1% each.

BSE realty, auto and FMCG were also in green.

Jaiprakash Associates was the biggest Sensex gainer - up 3.6% at Rs 85. Reliance Infrastructure added 2.6% to Rs 611.

Auto stocks were also up. Bajaj Auto and Tata Motors added 1.6% each to Rs 1,391 and Rs 1,146, respectively.

ONGC, Bharti Airtel, DLF, HDFC, Reliance Communications and HDFC Bank were up 1-2% each.

Other gainers included BHEL, Infosys, L&T, Reliance and HUL.