Markets extend gains as EU leaders unveil plans

Sensex up 2%

Markets extended gains in the morning deals after a gap up opening after European leaders unveiled plans to resolve the debt crisis in the region.

Euro zone leaders agreed on Friday to take emergency action to bring down Italy's and Spain's spiraling borrowing costs and to create a single supervisory body for euro zone banks by the end of this year, a first step towards a European banking union.

The BSE Sensex advanced 332 points at 17,333, hovering near the day’s high of  17,348 and the Nifty gained 97 points at 5,246.

In the broader markets, both the midcap and the smallcap indices gained 1% each though underperforming the Sensex which advanced nearly 2%.

All the sectoral indices were in the positive gaining atleast 1%. The ones leading the gains were capital Goods, Bankex, Power, Auto and FMCG up 2% each.

All the Sensex-30 stocks were trading in the green. Maruti Suzuki, ICICI Bank, Tata Power, Sun Pharma and L&T up 3% each were the notable gainers. Shares of fast moving FMCG major ITC, pharmaceutical giant Sun Pharmaceutical and private sector bank, HDFC Bank have hit their respective lifetime highs in morning trades on the National Stock Exchange.

Among other stocks, Cain India tanked almost 8% to Rs 303 in otherwise firm market in the early trades on back of huge block deals on the BSE and NSE.

The market breadth was very positive on the BSE. 1600 stocks advanced while 657 stocks declined.