Markets have extended their gains amid volatility with the Sensex and the Nifty crossing 18,400 mark and 5,600 levels, respectively. The upmove is supported by Capital Goods, Metal and Power stocks. At 11:15, the Sensex was up 84 points at 18,374 and the Nifty gained 26 points at 5,590 levels.
On the global front, Asian stocks pared losses on Tuesday after euro zone policy makers agreed to a second bailout package for Greece in marathon talks that went deep into the Brussels night. Hang Seng, Nikkei and Kospi have gained by nearly 0.5% each.
Back home, BSE Realty, Metal and Power indices have surged by nearly 2%. However, Consmuer Durable sector has declined by over 1%.
BHEL is the top Sensex gainer, up 4% on reports that the Cabinet Committee on Economic Affairs (CCEA) will impose import duty at the rate of 20% on the power generation equipment for projects above 1,000 megawatts (MW).
From the Metal space, Tata Steel, Hindalco, Jindal Steel and Sterlite have gained between 1-3%.
Shares of real estate companies continue at their upward march, on expectation of reduction in interest rates, will increase the demand for properties going forward. DLF has surged by almost 2%.
According to analyst, the improvement in macro-economic scenario with fall in inflation and cut in interest rates from Q1FY13 and the reduction in debt and improvement in cash flows either through monetisation of land, sale of non-core assets or strategic sale in projects led the rally in sector stocks.
ONGC has rallied 4% on reports that the overseas investors have assured the government they would buy up the proposed 5% stake sale in the company.
Auto stocks like Hero MotoCorp, Bajaj Auto and M&M have gained between 0.5-2%.
Among banking segment, SBI and ICICI Bank have incrased between 1-2%.
The broader markets continue to outperform the benchmark indices. BSE Midcap and Smallcap indices have gained between 0.8-1.2%.
Suzlon Energy has gained 4% after the company said that its subsidiary, REpower Systems SE, has signed a framework contract with Mala Eolis for the supply of up to 250 megawatts (MW) for onshore wind farms in France.
Oberoi Realty has surged 13%, its highest price since its listing in October 2010. Orbit Corporation, Ansal Buildwell and Purvankara Projects are trading higher by more than 5% each on the Bombay Stock Exchange (BSE).
The overall market breadth remains steady as 1,561 stocks are advancing while 935 are declining.