Markets remain firm

BSE Oil & Gas and PSU indices have surged by 3% each

Benchmark Indices are higher led by buying demand among Oil & Gas, PSU, Banking and Capital Goods shares. However, selling among IT and Auto sectors have capped the upside movement.

By 1240, the Sensex was up 105 points at 20,068 and the Nifty gained 29 points to 6,068.

On the global front, Asian stocks rose for the first time in three days, with the regional benchmark index erasing its weekly loss on global growth recovery optimism.

Hong Kong's Hang Seng rose 1% to 23,552, Taiwan's Weighted index gained1% to 7,713,  Singapore's Straits Times was up 0.34% to 3,304  while China's Shanghai Composite added 1% to 2,306 and Japan's Nikkei gained 2.3% to 10,855.

Back home, BSE Oil & Gas and PSU indices have surged by 3% each. However, BSE TECk, IT and Auto indices have declined by nearly 1% each.

OMCs have surged after government partially deregulated diesel prices yesterday.

Among key Sensex stocks, Wipro fell 4.6% while dropped 0.5%, Bharti Airtel declined 1.65, Dr Reddy's and SunPharma dropped 1%,  Hero MotoCorp fell 4% while Mahindra & Mahindra and Tata Motors were down 2% and 0.3% on BSE.

ONGC surged 8%, OMCs namely Bharat Petroleum Corporation, Hindustan Petroleum Corp and Indian Oil Corp jumped between 7-11% on BSE.

CDMA operators Reliance Communications and Tata Teleservices will have to jointly shell out around Rs 2,900 as one-time spectrum fee following the Cabinet decision on CDMA spectrum. RCom is up marginally at Rs 83 while Tata Tele was flat at Rs 12.62.

Reliance Industries rose 1% on hopes of improved refining margins by the world's biggest refiner in the third quarter after surge in GRMs by the Essar Oil.

Hindalco has advanced over 1% at Rs 123.50 after the news that the company has acquired Alumina Refinery and Bauxite Mines from Novelis Do Brasil Ltd, a wholly subsidiary of Novalis Inc.

BSE Midcap and Smallcap indices are trading marginally higher.