Key benchmark indices witnessed volatile trades thoughout the day's session and ended on a strong note. The BSE Sensex ended (provisional) at 17,280, up 227 points and the Nifty ended at 5,252, up 68 points.
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(Updated at 1435 hours)
The markets witnessed volatility in afternoon trades, ahead of Thursday's futures and options (F&O) expiry.
The indices also reacted to reports that the Government will not target Participatory Notes (PNs) under the new GAAR regulations. One out of four tests, including abnormality test and main purpose test, have to be satisfied in order to invoke GAAR, reports suggest. Fears that the income-tax authorities would go after participatory note investments in equities have been looming over the bourses.
The BSE Sensex at 17,237, up 184 points and the Nifty at 5,222, up 38 points.
Earlier in the day, the BSE benchmark index touched that day's high at 17,367 and the day's low at 17,061.
According to Ranak Merchant, Technical Analyst - Strategies, Sushil Financial Services, "Nifty is trading just above its 200 day EMA. For Nifty the 5,203-5,170 range is an important support zone and if the same is not violated a test of 5,300 towards the week's end may be possible."
In Asia, Japan's Nikkei average hit its highest closing level since a massive earthquake and tsunami triggered a radiation crisis a year ago, buoyed by indications the US Federal Reserve may keep its supportive monetary policy. The benchmark Nikkei rose 2.4%, or 237 points, to 10,255, while the broader Topix also climbed 2.4% to 872. The Hang Seng index ended higher by 1.8% while the Shanghai Composite index ended lower by 0.2%.
European markets are also higher today with shares in Germany leading the region. The DAX is up 0.87% while London's FTSE 100 is up 0.57% and France's CAC 40 is up 0.47%.
Back home, all sectoral indices are trading in the positive turf with strong gains visible in the BSE Consumer Durables, FMCG and IT indices, up 1-2% each.
C Mahendra Exports, Titan Industries, VIP Industries and Bajaj Electricals, up 2-4% each, are the prominent gainers from the Consumer Durables' space.
From among the Realty stocks, DLF, Prestige Estates and Unitech, 3-4% each, are the notable gainers.
The Bankex index is at 11,669, up 1%. Meanwhile, the Reserve Bank of India (RBI) has asked banks to avoid offering sharply different rates on deposits with similar maturities, saying that something is wrong with lenders if their retail and bulk deposit rates vary too much.
Cipla has moved up 4% at Rs 301 and is the top gainer from among the Sensex 30 stocks. The stock has surged ahead of the Group of Ministers (GoM) meeting tomorrow to examine the proposed National Pharmaceutical Pricing Policy (NPPP) prepared by the ministry of chemicals and fertilisers. “The group will decide whether the policy should be market-based or a system of exact cost plus profit for medicine price fixing. The extent of price control, whether restricted to the specific strengths of drugs mentioned in the National List of Essential Medicines (NLEM) or on all strengths and combinations of NLEM, will be decided,” reports suggest.
Other prominent gainers include DLF, Sterlite Industries, Hindustan Unilever and Bharti Airtel, up 3-4% each.
Maruti Suzuki India is trading lower by 1% at Rs 1,284 after the Maharashtra government has proposed hike in road and registration tax on vehicles in its budget 2012-13. Maharashtra, and particularly Mumbai, is a key market for carmakers and is estimated to contribute as much 13-14 % of national sales. The buyers of petrol vehicles will have to shell out an additional 2%, while for diesel customers the hike will be steeper as the tax has gone up by 4%, once budget proposals come into effect on April 1, the report suggest.
Other losers from the space are Coal India, BHEL and NTPC, down 1% each.
Shares of companies engaged in gold loans such as Muthoot Finance and Manappuram Finance have dipped more than 8% each, extending their fall for a fourth straight trading session, after the Reserve Bank of India (RBI) asked these companies to put in place a board-approved policy to ensure that KYC (know your customer) guidelines are complied with and adequate diligence is carried out before extending any loan.
The overall market breadth is negative as 1,626 stocks have declined against 1,131 advancing ones, on the BSE.