Markets remain firm, heavyweights help

Markets continue to trade firm on sustained buying in index heavyweights. Positive cues from Asian markets, which rose on hopes of a solution to the Euro zone debt crisis, has also helped to cheer investors in the beginning of the holiday shortened week. The Sensex is up 273 points at 17,059. Nifty is up 84 points at 5,134.

"Positive global cues had led to significant gap up on our markets as well, we think tomorrow monetary policy action would be catalyst for nifty to jump above its major supply zone near 5180 levels, in short term. Also some activity is visible in 5400 strike on november series, giving indication of bias towards upward movement", says Navneet Daga, Derivative Analyst, KR Choksey Securities.

However, markets may remain volatile ahead of the derivatives expiry tomorrow. The Reserve Bank of India's monetary policy on the same day would be looked at closely for direction. The RBI is likely to raise rates by 25 basis points once again, feel bankers.

The markets will be closed on Thursday but will have a special mahurat trading session on Wednesday evening.

Among individual stocks, Tata Motors have jumped 4.5% to Rs 186. The company is looking to raise $750 million through overseas borrowing to meet working capital requirements and reduce debt.

Among other auto shares, Bajaj Auto has surged 3% to Rs 1,692. maruti Suzuki, after the labour unrest ended at its Manesar plant, has climbed 2% to Rs 1,114.

IT shares are in the green with TCS being one of the major gainers. The stock is up 3.6% at Rs 1,086. Wipro has added 2% while Infosys has gained 1.6% this morning.

Market heavyweight, Reliance is the biggest contributor to the Sensex's upmove. The stock is up 1.6% at Rs 849. Banking shares are in limelight with ICICI Bank gaining over 2.3%. HDFC Bank and SBI are up around 1.5% each.

Meanwhile, Larsen & Toubro has slipped 1% at Rs 1,322 after cutting down its order flow forecast to 5% from 15% for FY12.

Coal India has dropped 0.4% in trades at Rs 328. The company has reportedly violated the provisions of the New Coal Distribution Policy (NCDP).