Markets near day highs

Software and private banks among top Sensex gainers

Markets rose further in late morning trades on Thursday, amid gains in Asia and the rupee, with software and private banks leading the gains.

At 11:40am, the Sensex was up 96 points at 17,943 after touching a intra-day high of 17,955. The 50-share Nifty was up 27 points at 5,440 after touching a high of 5,444 so far.

In Asia, the markets were largely in the green as the Federal Reserve's minutes raised the prospect for more stimulus while uncertainty continued over progress in Europe's debt crisis including the European Central Bank's bold action.

The rupee rose to an over one-week high on Thursday after the euro jumped to a seven-week high on hopes of monetary easing by the Federal Reserve and as the government made it easier for companies to tap overseas funds. The rupee was trading at 55.2325/2475 versus its last close of 55.4950/5050.

Most of the sectoral indices on the BSE were trading with a positive bias. IT index was the frontrunner up 1.5% followed by Metal, Healthcare, Consumer Durables and Bankex.


Software shares rose after the US Federal Bank's policy committee discussed about a third round of quantitative easing. Infosys and TCS were both up over 1.6% each while Wipro was up 2.3%.

Shares of private bankers such as HDFC Bank and ICICI Bank were up 0.5-1% each on buying interest after their businesses were not impacted by the ongoing two-day strike by public sector banks.

Fast moving consumer goods shares such as ITC and Hindustan Unilever on defensive buying. ITC was up 0.3% while Hindustan Unilever was up 0.9%.

Among other shares, Ranbaxy Laboratories has rallied 4% at Rs 554, extending its previous day’s over 4% surge after the pharmaceutical firm said that it had withdrawn 27 drugs from the US market due to commercial reasons.
“The company has determined certain products with negligible commercial impact should be withdrawn to enable it to focus resources on other applications of greater importance and value to the US business and health care system,” Ranbaxy said in a filing to the Bombay Stock Exchange.

Alstom India was up nearly 4% after the company late Wednesday said it has bagged a Rs 700 crore contract, to be implemented alongwith state-owned BHEL, for supplying power equipment for Nuclear Power Corporation's plant at Rawatbhata in Rajasthan.

The broader market was marginally up with the BSE Small-cap index up 0.5% and the BSE Mid-cap index up 0.4%.

The market breadth remained firm. 1317 stocks advanced as against 997 declines on the BSE.