Markets remain firm, IT leads

Benchmark share indices remain upbeat amid gains in Asia and the rupee, with software, metals and private banks leading the gains.

At 1300 hrs, the 30-share Sensex was at 17,951 up 105 points and the 50-share Nifty was at 5,443 up 30 points. The Sensex and the Nifty have touched an intra-day high of 17,966 levels and 5,449 mark, respectively so far.

On the global front, Asain 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. Nikkei, Strait Times, Hang Seng, Taiwan, Kospi and Shanghai have gained between 0.1-1%.

Back home, 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. 

On the sectoral front, BSE IT and Metal indices have surged by almost 2% each followed by counters like Healthcare, Consumer Durable, Banks and FMCG, all gaining by nearly 1% each. Apart from Oil & Gas and Auto, all the major BSE sectoral indices are trading in positive zone.

Shares of information technology (IT) companies are in limelight on the bourses after minutes from the US Federal Reserve showed that the central bank's policy committee discussed a third round of quantitative easing at its last meeting.

Among the individual stocks, TCS, trading at its lifetime high is up 2% at Rs 1,319. Infosys and Wipro are up by 2-3%, while HCL Technologies, Hexaware Technologies and Tech Mahindra from IT index are up in the range of 1-2% on the BSE.

Banking shares like ICICI Bank, HDFC Bank and SBI are up 0.5-1.5% 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 is up 0.3% while Hindustan Unilever has gained nearly 1%.

From the Metal space, Tata Steel, Jindal Steel, Hindalco, Sterlite and Coal India have spurted between 1-2%.

Other prominent gainers include Tata Power, Cipla, Sun Pharma, Dr Reddy’s Lab and Bharti Airtel.

Among other shares, Alstom India is trading higher by 4% at Rs 401 after the company said that Alstom in consortium with Bharat Heavy Electricals Ltd (BHEL) has secured a contract from Nuclear Power Corporation of India Ltd (NPCIL) for the supply of turbine generator packages.

Opto Circuits (India) has tanked 14% to Rs 119, its three-year low, on back of over four-fold jump in trading volumes.

The BSE mid-cap and small-cap indices are trading marginally higher, both gaining by nearly 0.5%. 

The overall market breadth remains positive with 1,432 stocks advancing while 1,100 declining.