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Markets continued to trade firm in early deals on Thursday, amid firm Asian cues, led by oil and gas shares ahead of the meeting of the Cabinet Committee on Economic Affairs on the issue of hike in gas prices later today. Further, lower-than-expected current account deficit for the March quarter also helped improve sentiment.
At 10:30AM, the 30-share Sensex was up 193 points or 1% at 18,745 and the 50-share Nifty was up 61 points at 5,650.
The June derivative contracts will expire today.
The Indian rupee gained on Thursday, backing off from a record low hit in the previous session, as the country's current account deficit (CAD) narrowed in the January-March quarter, easing some concerns about the funding of the deficit.
The rupee rose to 60.36/38 to the dollar, recovering from a record low of 60.76 hit on Wednesday. The currency closed at 60.7150/7250 in the previous session. The current account deficit narrowed to $18.1 billion in January-March versus a $21.7 billion deficit in the same quarter year ago.
March quarter current account deficit was $18.1 billion, or 3.6% of GDP, lower than expected and below the $21.7 billion deficit a year earlier, the Reserve Bank of India said on Thursday.
Asian shares rose for the second straight session after fears of the US Fed ending its stimulus measures subsided and moderation in China's money market rates. Nikkei was up 2.4 per cent, Straits Times gained 1.4 per cent and the Kospi was up 3 per cent while Hang Seng was up 1.3 per cent. China's Shanghai Composite was up 0.4 per cent.
The BSE Oil and Gas index was the top gainer among the sectoral indices on the BSE up 2.4% followed by IT, Realty, Healthcare, Bankex and Auto among others.
In the oil and gas segment, Reliance Ind was up 2.2% while ONGC gained 3.2%.
Software exporters continued to trade higher on the back of a weakening rupee. Infosy and TCS were up over 1.7% each.
Bank shares were also up on short covering and bargain hunting after the recent correction. HDFC Bank, ICICI Bank and SBI were up 0.8-1.5% each.
Among other shares, Oil India has surged 4% to Rs 583 in early morning deals, extending its previous day’s nearly 3% gain, on reports that the state-owned oil exploration and production company is close to acquiring another gas asset in Africa after buying stake in Mozambique gas field.
Religare Enterprises as rallied 5% to Rs 355, extending its previous day’s 4% gain, after the company said US-based Customers Bancorp Inc agrees to invest $51 million (around Rs 305 crore) in various securities through a combination of primary and secondary market transactions.
Hanyung Toys and Textiles has plunged 13% to Rs 89 after reporting a net loss of Rs 33 crore for the quarter ended March 2013, due to higher depreciation and other expenditure. The company had net profit of Rs 44 crore in a year ago quarter.
In the broader market, the BSE Mid-cap and Small-cap indices were up 0.5% each.
Market breadth was strong with 989 gainers and 565 losers on the BSE.
