Markets have edged higher tracking firm Asian cues and buying among financial shares. At 1115 hrs, the Sensex was up 115 points at 16,758 and the Nifty gained 30 points at 5,048 levels.
On the global front, Asian shares extended their gains to fresh two-month highs on Friday as solid euro zone sovereign debt sales and signs of Greece moving closer to a vital debt-swap deal eased concerns over Europe's refinancing capability and boosted risk appetite. Hang Seng, Shanghai Composite, Nikkei, Strait Times, Kospi and Taiwan Weighted have surged between 0.3-1%.
Back home, BSE Bankex, Consumer Durable and Realty indices have spurted by nearly 1% each.
From the banking space, ICICI Bank is the top Sensex gainers, up by over 4%. SBI has gained by nearly 2%. HDFC Bank is marginally positive. Banking stocks have gained on expectations that the central bank will start cutting interest rates in the coming months after December headline inflation fell to a 2-year low 7.47%.
Among Consumer Durable segment, Blue Star, Rajesh Exports, Titan Inds, TTK Prestige, Videocon Inds and VIP Inds have surged between 1-4%.
Interest rate sensitive Realty pack maintains the steady momentum on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy. DLF has zoomed by nearly 2%.
FMCG major ITC has gained 1% ahead of its numbers for quarter ended December FY12.
Metal stocks like Jindal Steel, Tata Steel and Sterlite Industries are up between 1-3%.
From the Auto space, Bajaj Auto has gained by nearly 4%.
On the flip side, index heavyweight RIL has declined by nearly 1%. Among others, Coal India, Maruti Suzuki and M&M have gained between 2-3%.
The broader markets are performing in line with the benchmark indices, both gaining by nearly 1%.
Sugar stocks like Shree Renuka, Bajaj Hindusthan and Balrampur Chini are up 1-3% after govt sources say, EGOM on food will meet on February 7 to consider more sugar export.
Tata Coffee has surged 6% on reports that US-based coffee giant Starbucks has signed a memorandum of understanding (MoU) with the company and hopes to announce the deal by the month end.
KNR Constructions has rallied 6% after the company said its joint venture (JV) has received order worth of Rs 207 crore from Government of Andhra Pradesh for construction of major bridge.
However, stocks like Dish TV, IFCI, SKS Microfinance and Jet Airways have reacted negatively post Q3FY12 results. All the stocks have fallen between 3-5%.
SKS Microfinance has dipped 9%, its lifetime low, after reporting a fourth consecutive quarterly net loss due to higher provisions and loan write-offs.
The overall market breadth in BSE remains positive with 1,482 shares advancing and 823 shares declining.
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