Realty, banking stocks buoy markets

Markets are trading on a strong note on the back of renewed buying visible across the board. The Sensex has advanced 294 points at 17,735 levels and the Nifty is up 94 points at 5,375 levels.

According to Ranak Merchant, Technical Analyst- Strategies with Sushil Financial Services, "Nifty corrected almost till an important support point of 5,250 and now has seen a pullback. On the upside 5,380-5,400 remains an important resistance point that needs to be watched. Traders would be advised to remain light in the current series on account of event risks being many."

The Asian markets were also trading higher. The Nikkei advanced 88 points to 9,722 levels, Hang Seng added 255 points to 21,473. Shanghai and Taiwan were also trading higher.

Back home, Tata Motors is the top Sensex gainer, up 5.2% to Rs 274 ahead of the February vehicle sales numbers, which the company is scheduled to declare on Thursday, March 1. Sterlite Industries has also advanced 5.3% to Rs 122. SBI, Hindalco, BHEL, DLF, Tata Steel, ICICI Bank, Jindal Steel, Tata Power, HDFC, L&T, Cipla Hero MotoCorp, Bharti Airtel, Bajaj Auto, and Reliance Industries were also trading higher by 2-5% each.

On the other hand, TCS, Infosys and ITC were among the notable laggards on the Sensex.

Realty, banking and metal stocks are witnessing renewed buying interest after being beaten down badly in trades yesterday. The BSE Realty index is the sectoral gainer, up 4.4% or 81 points to 1,97 levels. HDIL, DB Realty, Sobha Developers, Unitech, DLF, Prestige Estates, Phoenix Mills and Anant Raj Industries are the top gainers from this space.

The BSE banking index- Bankex is up 3.6% or 418 points at 12,007 levels. Canara Bank, Bank of India, Yes Bank, PNB, Union Bank, Bank of Baroda, SBI, Axis Bank and IDBI Bank are among the prominent gainers, up 4-7% each.

The metal stocks are also in limelight, the Metal index is up 3.4% at 11,881 levels.

Auto, PSU, Power, Capital Goods, Healthcare, Oil & Gas and FMCG indices are also trading higher by 0.1-3% each.

At the same time led by the losses in hewavyweight IT stocks, the BSE IT index has shed 0.6% or 37 points at 6,141 levels.

Among the individual stocks, Jaiprakash Associates has moved up 7% at Rs 74.55 after the company late Monday said its shareholders and creditors have approved  hiving off its cement business to a wholly-owned subsidiary, Jaypee Cement Corporation Ltd (JCCL).

Reliance Infrastructure (RInfra) has surged 7% to Rs 578 on reports that the company may hike power tariff after the state power regulator Maharashtra Electricity Regulatory Commission (MERC) provisionally allowed a revenue gap of Rs 222 crore for the financial year 2010-11.

The broader markets are in line with the benchmark indices. The BSE mid-cap index has advanced nearly 3% or 166 points to 6,275 levels and the small-cap index is up 160 points at 6,794 levels.

The overall breadth is extremely positive as 2,002 stocks are advancing while 652 are declining.