Markets gain on global cues

Markets recovered most of the Monday's losses on hopes of a end to the deadlock between DMK and Congress on the seat sharing formula. Further, easing crude oil prices also buoyed investor sentiment globally.

The BSE Sensex had opened 18,277 and traded firm throughout the day. The benchmark extended gains in the last half hour of trade and touched a high of 18,467 on gains in the IT and banking space. The index finally ended up 218 points (1.2%) at 18,440.

On Monday, the Sensex had tumbled 264 points on the back of geo-political concerns, rising oil prices and domectic political turmoil.

The Nifty also moved in the positive zone touching a high of 5,531 and settled finally at 5,521 - up 58 points.

Dravida Munnetra Kazhagam (DMK)'s decision to put on hold the resignation of its six ministers from the UPA government seemed to comfort the markets. However, the seat sharing decision can give rise to more problems for the Congress.

Globally markets were up on easing worries of crude oil prices going up further as oil receeded from its highest in 29-months. Reports suggest that UAE and Nigeria may join Saudi Arabia in increasing output to make up for a drop-off in Libyan oil.

Asian markets ended in the positive zone. The Hang Seng jumped 1.7% to 23,711. Nikkei managed to advance 20 points to 10,525. Seoul COmposite added 0.8% to 1,996.

Bourses in USA had dropped on Monday as technology stocks showed weakness. The Dow dropped 80 points to 12,090. The S&P 500 fell 0.83%, to 1,310. The Nasdaq Composite lost 1.4% to 2,745.

In other news, the Insurance Regulatory and Development Authority (Irda) may allow insurers to trade in equity futures and options contracts which will help the companies protect returns from equity-linked products against sharp stock market declines.

On Monday, global rating agency, Moody's termed the Budget plan for fiscal 2012 as "credit positive" for the Indian government.

All the sectoral indices were in the green. BSE IT index jumped 2%, followed by metal, bankex and realty. FMCG index recovered from its low and ended flat at 3,503.

IT stocks shone in today's market. Tech Mahindra soared 9% to Rs 739. Index heavyweight, Infosys surged 2.5% to Rs 3,115. TCS and Wipro added around 1% each. Other gainers included HCL Tech, Core Projects and Patni Computers.

Bharti Airtel jumped 3% to Rs 334. Tata Motors, ONGC and Jaiprakash Associates added 2-3% each. Metal stocks were in the green. Tata Steel jumped 2% to Rs 615. Sterlite added 1.6% to Rs 169. Jindal Steel and Hindalco advanced 1% each.

DLF and Reliance Infra among infratructure stocks advanced 2% each. Bajaj Auto, HDFC, HDFC Bank, ICICI Bank and Reliance Communications gained 1% each. Market heavyweight, Reliance, added 1% to Rs 984.

However, select auto stocks dropped. Hero Honda slipped 0.7%, followed by 0.6%. FMCG heavyweight, ITC, dipped 0.3% at Rs 172.

BSE market breadth was fairly positive. Out of 2,961 stocks traded, 1,778 advanced while 1,059, declined.