Markets trading near day highs

Benchmark Indices are trading near days high on significant buying among index heavyweight RIL, Auto and Banking shares. Asian markets too are supporting the upmove. 

At 1300 hrs, the Sensex was up 223 points at 17,421 and the Nifty gained 66 points to 5,282. The Sensex and the Nifty have touched an intra-day high of 17,448 levels and 5291 mark, respectively so far.

The rupee erased some gains made this morning although it was still trading 39 paise stronger against the dollar on fresh selling of the American currency by banks and exporters.

On the global front, Asian markets have surged on optimism regarding the European financial crisis. Nikkei, Strait Times, Hang Seng, Taiwan, Kospi and Shanghai have gained between 1-2%.

Back home, BSE Oil & Gas index has surged by nearly 3% followed by counters like Auto, Banks, Capital Goods, Realty, Metal, Healthcare, Power and Consumer Durable, all gaining by nearly 1% each. Apart from FMCG, all the major BSE sectoral indices are trading in positive zone.

Index heavyweight Reliance Inds is the top Sensex gainer, up over 5%, also its highest level since April 2012. According to reports, RIL has agreed to share KG-D6 accounts with the national auditor under the terms of the production sharing contract (PSC), meeting a key demand of oil minister Jaipal Reddy ahead of a crucial meeting of the block's management committee.

The management committee (MC) of RIL’s KG-D6 is scheduled to consider commercial viability of the three new gas discoveries on Tuesday, the report suggests.

Auto shares like Tata Motors, Bajaj Auto, Maruti Suzuki and M&M have gained between 1-3%. Banking and financial shares like HDFC Bank, ICICI Bank, HDFC and SBI have surged between 1-2%.

Other notable gainers include Sun Pharma, L&T, Sterlite, Hindalco, JSPL, Bharti Airtel and Tata Power.

On the losing side, Dr Reddy’s and TCS have dropped by nearly 1%.

Among other shares, Wockhardt Limited has surged over 7% to Rs 1,085, also its all-time high, after reporting a strong 94% year-on-year (yoy) growth in consolidated net profit at Rs 378 crore for the quarter ended June 2012 on back of higher income. Net sales grew 35% at Rs 1,426 crore on year-on-year basis.

Shares of the multinational companies (MNCs), which would be probable delisting candidates, are in limelight on the bourses on reports that the market regulator Sebi said that it will not extend the deadline to comply with minimum public shareholding norms.

Fresenius Kabi Oncology, Astrazeneca Pharma India,BOC India, Honeywell Automation India, Sharp India, Wendt India, Kennametal India and Elantas Beck India, having promoter holding more than 75% each, have rallied more than 5% each.

The broader indices are performing almost in line with benchmark indices; the BSE Midcap and Smallcap indices are up 1% each.

The market breadth in BSE ended remains firm with 1,619 shares advancing and 956 shares declining.