Nifty nears 5,400 on broad-based buying

Benchmark shares indices have extended the gains on the back of positive Asian cues, with Reliance Industries and financials leading the gains. At 11:30 hrs, the Sensex was up 283 points at 17,729 and the Nifty gained 90 points at 5,371 levels.

On the global front, Asian shares edged higher and the euro steadied on Tuesday as markets waited for a second liquidity injection from the European Central Bank to gauge risk appetite that has been somewhat dented by worries over high oil prices. Nikkei, Strait Times, Hang Seng, Taiwan Weighed and Kospi have surged between 0.1-0.5%. However, Shanghai Composite is trading marginally lower.

Back home, sectors like Realty, Consumer Durable, Metal, Banks and Power have spurted by nearly 3% each. Apart from Technology, all the major BSE sectoral indices are trading in green zone.

Index heavyweight Reliance Industries has rebounded and is up by nearly 2%.

Banking and financial shares like ICICI Bank, SBI, HDFC and HDFC Bank have gained between 1-3% on hopes of rate cut by the central bank as concerns over rising inflation eased.

Realty stocks have also rallied on expectations that the central bank will start cutting interest rates in the coming months to prop up slowing economy. DLF has zoomed by nearly 3%.

From the Metal space, Hindalco is the top Sensex gainer, up 5%. Sterlite, Tata Steel, Coal India and Jindal Steel have gained between 1-4%.

Among Auto segment, Tata Motors has jumped by nearly 4% ahead of the February vehicle sales numbers, which the company is scheduled to declare tomorrow. Hero MotoCorp, M&M, Bajaj Auto and Maruti Suzuki have gained between 1-3%.

Other gainers include BHEL, Tata Power, GAIL India and ONGC, all rising between 1-4%.

The broader markets have outperformed the benchmarks indices. The BSE Midcap and Smallcap indices have zoomed by over 2% each.

McLeod Russel India has rallied 6% to Rs 229 on reports that the world’s biggest tea planter, has put in bids for acquisition of two tea plantation companies in Rwanda, East Africa.

Gillette India has soared 10% to Rs 2,424, its highest level since January 2000.   

Bank of Maharashtra (BoM) has rallied 5% after the board of the public sector bank has approved issue of equity shares to Government of India (GOI) and Life Insurance Corporation of India (LIC) on preferential basis at a premium to current market price.

Gravita India is trading higher by 2% at Rs 752, also its all-time high market price, on announcing stock split plans of its shares at lower denomination from the existing face value of Rs 10 per share.

The overall market breadth in BSE remains firm with 1,789 shares advancing and 593 shares declining.