After a gap up opening, markets continue to trade firm owing to the positive global cues and buying interest across the board led by FMCG shares. The BSE benchmark index rose 260 points at 16,281 and the Nifty added 80 points at 4,943.
In the broader markets, the midcap and the smallcap indices gained 1% each almost in line with the Sensex.
In the Asia, except Shanghai, all the other markets were trading in the green. Japan's Nikkei share average advanced nearly 2%, after data showed the U.S. services sector improved in May, helping to offset concerns over the euro zone debt crisis. Hang Seng, Jakarta Composite, Straits Times and Kospi Composite added 1-2%.
All the sectoral indices on the BSE were in the green with Auto, FMCG, Power and Metal indices leading the gains, up 2% each closely followed by Realty and Bankex up 1.9%.
Shares of FMCG companies rallied on hopes of good rainfall this year will help increase farm output, which takes up income, improving sales. Among the individual stocks, ITC, Tata Global Beverages surged 3% followed by Hindustan Unilever up 2%.
Interest rate sensitive stocks gained on hopes that RBI will cut interest rates at mid-quarter monetary policy review to support the slowing economy. The top gainers from the banking counter were HDFC Bank, SBI, Axis Bank and ICICI Bank up 1-2%.
Auto shares also saw an uptick as Tata Motors, Hero MotoCorp and Maruti Suzuki added between 2-4%.
In the realty segment, DLF was up 2%. Among other realty shares, Sobha Developers, HDIL and Unitech were up 3-7% each.
Metal stocks gained on bargain hunting. Jindal Steel, Tata Steel, Sterlite and JSW Steel up 2-3% were the major gainers.
The other notable gainers among the Sensex stocks were TCS, DLF, NTPC, BHEL and Wipro up 1% each. Index heavyweight, Reliance Industries rose 1%, extending its two day gain.
Meanwhile, Bharti Airtel down 0.2% was the only loser among the Sensex-30.
The market breadth was very positive. 1528 stocks advanced while 683 stocks declined.
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