Key benchmark indices extended gains with both the Sensex and the Nifty gaining over 1.5% each. At 10:45am, the Sensex was up 312 points at 17,659 and the Nifty advanced 92 points at 5,330.The gains were led by ICICI Bank, Reliance Industries and Infosys.
The broader markets continued to underperform with the smallcap and the midcap indices gaining 1% each.
The rupee rose by 13 paise to 55.53 against the dollar in trades today at the Interbank Foreign Exchange on increased capital inflows amid stronger euro overseas.
Among the sectoral indices, Metal, Oil & Gas, Bankex and Capital Goods indices advanced 2% each. Meanwhile, FMCG index was marginally up 0.5%
Shares of metal companies rallied in the range of 2-4% after the European Central Bank said it will undertake an aggressive bond-buying program to help struggling euro zone countries.
Tata Steel, Hindalco Industries, Sterlite Industries, Sesa Goa, Jindal Steel and Power, JSW Steel and SAIL are up by more than 2% each.
Among individual stocks, United Spirits dipped 4% to Rs 948, extending its previous day’s 2.5% fall in otherwise firm market after the Vijay Mallya-promoted company denied the stake sale in Whyte & Mackay. “The company has clarified to BSE that the news item forwarded contains speculative information and it would not be appropriate for the Company to comment on market rumours,” USL said in a filing.
Mahindra Ugine Steel Company (MUSCO) soared over 10% at Rs 53 on back of heavy volumes, after the company said it has formed a new joint venture (JV) company, Mahindra Sanyo Special Steel Private Ltd, following the financial closure of its joint venture.
Vadilal Industries surged 13% at Rs 249, its historic high on back of over two-fold surge in trading volumes.A combined 525,754 shares changed hands on the counter in early noon trades, against an average less than 180,000 shares that were traded daily in past two week on both the exchanges.
Market breadth remained positive with 1660 advances against 616 declines on the BSE.
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(Updated at 9:25)
Markets had a gap up opening with the Sensex starting up 230 points at 17,577 and the Nifty advanced 75 points to open above the 5,300 levels at 5,314 on the back of strong global cues.
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In the broader markets, the midcap and the smallcap indices opened up 1% each, underperforming 5the Sensex which zoomed up 1.5%
Overnight, the S&P 500 index leaped to its highest level in more than four years and the Nasdaq jumped two per cent on Thursday as investors lauded a new bond-buying programme in Europe aimed at containing the region’s debt crisis and signs of improvement in the US labour market. The Dow index had its biggest gain in two months.
Asian shares rose after the European Central Bank outlined its bond-buying scheme to help calm the euro zone's debt crisis and a firm US market. The top gainers were Shanghai Composite, Hang Seng, Nikkei and Kospi Composite gaining 2% each.
Back home, technical analysts suggest that the Nifty has near support around 5,215, below which it can slide to 5,160. The index is likely to seek support around 5,220-5,210, while face resistance around 5,255-5,265.
All the sectoral indices on the BSE opened in the green. Metals, Bankex and Capital Goods started up nearly 2% each and were the top gainers followed by Realty, Oil & Gas, IT and Auto indices gaining 1.6% each.
All the Sensex stocks opened in the green with Tata Steel, Tata Motors, ICICI Bank, Hindalco, Sterlite and Reliance Industries gaining 2% each.
The market breadth was very strong with 1027 stock advances while 222 stocks declined on the BSE.