Markets pare gains; Sensex slips below 31,000 in noon deals

The benchmark indices pared some intraday gains, with the S&P BSE Sensex slipping below its crucial 30,000-mark in the afternoon trade ahead of the derivatives expiry of June series. 

At 1:10 pm, the S&P BSE Sensex was trading at 30,911, up 76 points, while the broader Nifty50 was ruling at 9,516, up 25 points.

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices outperformed to gain 0.5% and 1%, respectively.

Market breadth depicted strength. There were almost 3 gainers against every loser on BSE. 1,726 shares rose and 581 shares declined. A total of 119 shares were unchanged.

Bank shares recovered, with the Nifty PSU Bank index rising as much as 1.2% after three consecutive sessions of losses. Canara Bank rose as much as 3.8%.

Axis Bank, up as much as 4.6%, was the top gainer on both the indexes. The stock recorded its biggest intraday gain in over four months.

Kotak Mahindra Bank bucked the trend to lose over 3% to Rs 948 on the BSE. The stock was the top loser on Sensex and Nifty. 

Meanwhile, software services exporters, whose shares have taken a hit this year, also advanced.

Infosys climbed 2.5% on bargain hunting after losing for the last two sessions. The Nifty IT index rose as much as 0.8%.

Shares of Indian drugmaker Eris Lifesciences rose over 4% on their trading debut on Thursday.

Rashtriya Chemicals and Fertilizers fell as much as 5.4% after the company said on Wednesday that the government would divest 5% stake in the firm.

Overseas, Asian stocks edged higher, taking cues from a stronger finish in US markets. The MSCI's broadest index of Asia-Pacific shares outside Japan climbed as much as 0.9% to hit its highest level since May 26, 2015.

US equities registered strong gains overnight as bank stocks led the charge. The S&P 500 index notched its biggest one-day gain since late April. 

(With inputs from Reuters)