Markets remain firm, Sensex regains 17,000

Markets are trading firm led by buying among index heavyweights RIL, ICICI Bank and Infosys. At 11.20 AM, the Sensex was at 17,005, up 141 points and the Nifty gained 43 points at 5,130.

On the global front,  Asian markets are trading firm after Greek Prime Minister Lucas Papademos raised hopes for a deal to be reached this week to avoid a default, but markets were starting to worry that Portugal might need a second rescue. Hang Seng and Taiwan Index have gained by nearly 1% each. Kospi, Nikkei and Shanghai Composite are trading marginally in green zone.

Back home, index heavyweight Reliance Industries has gained over 2% as the company's share buyback programme starts from tomorrow, 1 February 2011.

BSE Bankex has surged by nearly 2%. ICICI bank is the top Sensex gainer ahead of its Q3 results today, up by nearly 3%. SBI has gained by almost 2% as the GoI has agreed to inject around Rs 7,900 cr into the bank by way of preferential allotment of equity shares. HDFC Bank and HDFC have gained by over 1% each.

IT stocks like Infosys, TCS and Wipro have gained between 1-2%.

Interest rate sensitive Realty stocks gained on expectations that the central bank will start cutting interest rates in the coming months to prop up slowing economy. DLF has increased by almost 2%.

From the Auto space, Bajaj Auto, Tata Motors, M&M and Hero MotoCorp have gained between 1-2%.

Telecom major Bharti Airtel has gained by over 1%.

However, BSE Capital Goods index is down by over 1%. L&T has declined by almost 2%.

Coal India has declined 2% on reports that the company cut coal prices on Monday.

The broader markets are performing almost in line with the benchmark indices, gaining by nearly 1%.

Tata Global Beverages has jumped 5% as the company entered into JV with Starbucks group to operate Starbucks outlet in India.

KNR Constructions has rallied 14% at Rs 133 after the company said it has bagged two orders from GVK worth Rs 675 crore.

The overall market breadth in BSE remains firm with 1,330 shares advancing and 886 shares declining.