Markets are trading on a firm note in noon deals in-line with gains across Asia and Europe as investors remained hopeful of the progress in the European Union to contain the debt crisis and buying in banking shares back home. The Sensex is at 17,022, up 273 points and the Nifty is at 5,120 up 85 points.
Earlier in the day, the markets had opened on a positive note and touched a high of 17,040 in the afternoon tracking the firm opening in Europe.
Asian shares rose on Wednesday, but gains were capped by a cut on Spain's sovereign credit rating by Moody's Investors Service that kept investors' risk appetite in check. The Japan’s Nikkei stock average ended up 0.4%, the Hang Seng added 1.3% and the Shanghai Composite Index closed flat.
In Europe, stocks have marched higher; FTSE, CAC and DAX are up 0.5-0.7% each on reports that France and Germany reached a deal to enlarge the Euro-zone bailout fund to $2.5 trillion.
Back in India, major contributors to the Sensex are Reliance Industries, ICICI Bank and Larsen & Tourbo, up 1-2% each. The only loser on the Sensex is Hindustan Unilever, down 0.2%.
Among individual stocks, ONGC is up 1% after news that the follow-on public offer is likely to take place next month. There are concerns that ONGC’s Rs 11,000 crore issue will suck liquidity from the secondary markets.
Investors have cashed into banking shares; Axis Bank, State Bank of India and ICICI Bank have advanced over 2% each.
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The realty index is on a firm ground, up 2%; Anant Raj Industries has advanced 4%, followed by DLF and Unitech, up 3% each.
Market breadth is positive, 1,621 stocks are advancing, for 1,051 declining shares on the BSE.