The markets traded on a positive note in the past one hour of trade, the Sensex added 399 points to 18,128 and the S&P CNX Nifty was higher by 120 points to 5430.
Buoyed by better than expected Q3 results, Tata Motors led the gainers chart on the Sensex. The stock was trading higher by 5.4% at Rs 1207, Larsen & Toubro was also trading higher by 4.3% at Rs 1624. Jindal Steel, Tata Power, Jaiprakash Associates, State Bank of India, BHEL, Hero Honda, Tata Steel and HDFC were also among the gainers, up 2-4% each. On the other hand DLF was the only loser.
All the sectoral indices were in the green, BSE Capital Goods index led the sectoral pack, the index added 444 points or 3.5% at 13,080. Auto index was higher by 3% or 256 points at 8747. Consumer Durables, FMCG, Metal, Power, Bankex PSU and Healthcare indices were also trading higher by 1.9-2.7% each.
Havells India was the top gainer among the Capital Goods stocks, up 5.3% at Rs 318 followed by Usha Martin, BGR Energy, Larsen & Toubro, Bharat Electricals, Thermax, Areva T&D, BEML and Praj Industries. Among the Auto stocks Tata Motors led the rally followed by Amtek Auto, Cummins India, Hero Honda, Exide Industries, Ashok Leyland and Bajaj Auto.
The broader markets were also tradin higher, the BSE mid-cap index was higher by 2.7% or 174 points at 6650 and the small-cap index added 269 points or 3.45% to 8078.
The overall market breadth was extremely positive as 2318 stocks advanced while 424 stocks declined.
Meanwhile on the economic front the the inflation for the month of January eased to 8.23%. Primary articles inflation came in at 17.28% compared to 16.46% in the previous month, fuel group inflation was recorded at 11.41% versus 11.19% (MoM).