Markets remain firm, IT leads

Benchmark share indices continue to trade higher led by buying demand among IT, Metal, Capital Goods and Oil & Gas segments. Firm global markets are also leading the higher trend. By 1130, the Sensex was up 85 points at 17,270 and the Nifty surged 27 points to 5,244.

Meanwhile, the rupee today strengthened by 15 paise to trade at 55.33 against the dollar in early trade on the Interbank Foreign Exchange, as the American currency weakened against other currencies overseas.

On the global front, Asian shares remain firm as strong corporate profits from U.S. bellwethers allayed fears of a slowdown in earnings, particularly for the beleaguered tech sector, while the euro steadied after overnight weakness. Japan's Nikkei was up 0.7%, although market players warned that appreciation in the yen could limit gains. Shanghai Composite, Hang Seng, Kospi Composite and Taiwan Weighted have gained between 1-2% each.

Back home, BSE Consumer Durable and IT indices have surged by almost 2% followed by counters like Power, Metal, Capital Goods, Realty, Oil & Gas, Banks and PSU, all gaining by nearly 1% each. However, BSE Auto and FMCG indices have declined between 0.2-0.5%.

From the Consumer Durable space, Bajaj Electricals, Gitanjali Gems, Rajesh Exports, Titan Inds, TTK Prestige and Whirlpool have gained between 1-4%.

IT major and index heavyweight Infosys has gained over 2% on value buying at lower levels after the stock witnessed selling pressure last week following lower dollar revenue guidance for FY13. Wipro and TCS have gained by nearly 1% each.

Among Capital Goods segment, BHEL is the top Sensex gainer, up over 2.5%. L&T has surged by almost 1%.

Shares in Bharat Heavy Electricals and Larsen & Toubro rise on media reports the cabinet will meet on Thursday to discuss import duties in power equipments.

Power equipment makers have long clamoured for duties citing competition from cheaper imports, especially from China. Tata Power has surged by almost 2%.

From the Metal space, Hindalco, JSPL, Sterlite and Tata Steel have shined between 1-2%. Jindal Steel and Power has jumped on reports that the company is in discussions to acquire controlling stake in Canada's CIC Energy.

Banking and financial shares like ICICI Bank, HDFC Bank, HDFC and SBI have surged between 0.5-2%.

Other notable gainers include RIL, Cipla, Bajaj Auto, GAIL India and NTPC.

On the losing side, Maruti Suzuki is the top Sensex loser, down over 7% after the violence erupted at its Manesar plant forcing stoppage of work. Other losers include Bharti Airtel, Hero Moto and ITC.

Among other shares, Karur Vysya Bank is trading lower by 3.6% at Rs 423 after the stock turned ex-dividend today.

The board of directors of the bank recommended a dividend of Rs 14 per share to the shareholders for the year ended March 31, 2012, subject to the approval of the shareholders at the Annual General Meeting (AGM) scheduled to be held on July 23, 2012.

CRISIL Ltd is trading lower by 2.3% at Rs 1,005 after the company posted a minor decline in net profit at Rs 43.7 crore for the quarter ended June 2012 as against Rs 44.4 crore in the same period a year ago.

The broader markets are also trading higher. The overall market breadth is healthy as 1,425 stocks have advanced against 838 declines, on the BSE.