Markets surge 2% led by ICICI Bank

The Sensex ended above 17,000 on Tuesday led by ICICI Bank to end January 2012 with a gain of 11.3% the benchmark index's best ever monthly performance since September 2010 and best January gains in 18 years.

This is Sensex second best monthly performance since September 2010 when it had gained 11.7% and best performance in the first month of a calendar year after it had surged 19.4% in January 1994.

The 30-share Sensex ended at 17,194 up330 points or 1.96% and the 50-share Nifty ended at 5,199 up 112 points or 2.2%. The Sensex and the Nifty reached an intra-day high of 17,239 levels and 5,215 mark, respectively. 

On the global front, Asian markets ended firm after Greek Prime Minister Lucas Papademos raised hopes for a deal to be reached this week to avoid a default, but markets were starting to worry that Portugal might need a second rescue. Hang Seng, Kospi,and Taiwan Index gained between 1-2%. Nikkei and Shanghai Composite ended marginally in green zone. European markets are trading positive with CAC, DAX and FTSE gaining by almost 1% each.

Meanwhile, FIIs have bought nearly Rs 11,000 cr worth of Indian equity shares in January - highest ever since the November 2010.

Back home, ICICI Bank rallied nearly 6% after it reported 20% year-on-year (y-o-y) growth in net profit at Rs 1,728 crore for the quarter ended December 2011, compared with Rs 1,437 crore in a year ago quarter.

Among other financial and banking shares, SBI gained by over 4% as the GoI has agreed to inject around Rs 7,900 cr into the bank by way of preferential allotment of equity shares. HDFC Bank and HDFC gained between 1-2%.

Index heavyweight Reliance Industries gained almost 2.5% as the company's share buyback programme starts from tomorrow, 1 February 2011.

Interest rate sensitive Realty stocks gained on expectations that the central bank will start cutting interest rates in the coming months to prop up slowing economy. DLF increased by over 5%.

From the Auto space, Bajaj Auto and Tata Motors zoomed by almost 4% each. Bajaj Auto gained after the company unveiled a new motorcycle, Pulsar 200NS in Mumbai on Monday, 30 January 2012.

IT stocks rose after European Union leaders on yesterday, endorsed a treaty aimed at strengthening accountability and reining in spending by member nations as part of efforts to control the region's sovereign-debt crisis. Europe is the second biggest outsourcing market for the Indian IT firms after the US. Infosys and TCS spurted by over 2% each.

From the Metal space, Hindalco was the top Sensex gainer, up 7%. Sterlite, Jindal Steel and Tata Steel gained between 2-3%. However, Coal India was the top Sensex loser, down 3% on reports that the company cut coal prices on Monday.

Telecom major Bharti Airtel gained by nearly 2%.

In the broader market, the BSE mid-cap and small-cap indices increased between 1-2%.

Cement stocks gained ahead of announcement of monthly cement dispatches data for January 2012 by cement companies starting tomorrow. 

Tata Global Beverages rallied 10% on forming joint venture (JV) with the world’s biggest coffee chain operator, Starbucks, to roll out its cafes on a pan-India basis.

The overall market breadth in BSE ended firm with 1,804 stocks advancing and 1,034 shares declining.