Sensex ends up 217pts

Sensex ends (provisional) at 18,710 - up 217 points. Nifty ends up 60 points at 5,606.
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(Updated at 1435 hrs)

Strong cues from Asian markets and sustained buying by foreign investors, helped the markets to trade in green. After a firm opening, the Sensex touched a high of 18,703 and was trading at 18,674 - up 182 points. Nifty gained 45 points at 5,590.

The broader markets underperformed the benchmark and advanced 0.7% each. While the mid-cap index was at 6,825, the small-cap index traded at 8,099.

Foreign Institutional investors (FIIs) turned buyers last week and has bought shares worth Rs 3,296.4 crore since June 23.

Global markets were in the green ahead of the Greek Parliament's decision on austerity measures. Greece is required to cut down on spending before recieving its next round of assistance funds. Nikkei added 1.5% to 9,797. Taiwan, Seoul and Straits markets also went up 1% each. However, Hang Seng was flat at 22,061.

Metal stocks moved up, mirroring gains in the London Metal exchange. BSE metal index jumped 1.3% to 14,962. Jindal Saw surged 4% to Rs 156. Welcorp, Sterlite and Tata Steel gained 2% each in trades. Nalco, Sesa Goa and Hindustan Zinc were also up.

Market heavyweight, Reliance, gained 1.3% at Rs 882 after the recent sell off. The stock had dropped to its 52-week low a little more than a week ago after the Comptroller and Auditor General of India (CAG) questioned the decision of the oil ministry to allow RIL to raise the development cost of RIL's KG-D6 field.

Analysts expect the markets to remain volatile in near term as traders roll over positions in the derivatives expiry tomorrow. The market would also look at the Q1 corporate earnings for direction. The quarterly numbers are set to trickle in with HDFC on July 8 and Infosys on July 12, 2011.

India's economic growth continues to hold "untapped potential" for US firms, said Treasury Secretary, Timothy Geithner during bilateral talks between the two countries in Washington.

Wipro was up marginally at Rs 422 after turning ex-dividend. The company had announced a dividend of Rs 4 per share.

Meanwhile, in a major corporate development Tata's have sought interim relief in the Singur land case after the Supreme Court directed the West Bengal government not to return Singur land to farmers till the Calcutta High Court hearing is over.

The sugar stocks were trading on a positive note after the government issued a formal order for exports of an additional 500,000 tonnes of sugar approved by a panel of ministers. Shree Renuka Sugar soared 8.5% to Rs 66. Bajaj Hindusthan added 4.5% to Rs 70. Balrampur Chini Mills was up 4.6% at Rs 62.50.

BSE market breadth was positive through the day. Out of 2,892 stocks traded, 1,793 advanced while 1,004 declined in trades.