Markets remain firm

The Sensex has pared some of its gains and is at 18,437, up 180 points, and the Nifty is up 52 points at 5,331. However, the European markets have slipped into the red. CAC and DAX is down 0.5% and FTSE is down 0.3%, while the Asian markets continue to remain in the green. After some hours of trading in the red, Hang Seng has moved into the green at 21,072, up 0.2% and the Nikkei is static at 9,362, up 1.3%. In view of this scenario, the Indian markets appear to be resilient.

There is not much movement in the smallcap and midcap indices, which are up 0.7% and continues to underperform the banchmark index at 0.9%.

Among the BSE sectoral indices, FMCG up 1.6% has extended its gains, followed by Bankex and Metal. On the other hand, PSU and realty continue to languish at the bottom of the charts. IT and Teck have shed most of their initial gains.

However, the Bankex index continues to hold its gains. According to an India Infoline Research report, the Bank Nifty has rallied by a staggering 226% from its bottom of 3,330 touched in March 2009. An improvement in the market sentiment, followed by robust earnings, have driven a sharp upswing in both PSU and private banking stocks.

HDFC gaining 4% continues to lead on the Sensex gainers list follwed by ACCand ICICI Bank up 2% each  and Reliance Infrastructure.

On the losers list are ONGC down 1% followed by Wipro, Tata Motors, Hero Honda and SBI.

The market breadth continues to remain positive with 1687 stock advances and 1208 declines.