Sensex continues to trade near seven-month high

Banks, Oil and Gas stocks among top Sensex gainers

The 30-share Sensex continued to trade around the 18,000 mark,  its seven-month high, led by gains in banks, oil and gas stocks. The benchmark index on Wednesday closed tad above the 18,000 mark for the first time since February 23, 2012.

At 1:05pm the 30-share Sensex was up 6 points at 18,006 and the 50-share Nifty was trading flat at 5,432.

On the global front, Asian shares were mixed in volatile trade on Thursday ahead of the US Federal Reserve's decision later in the day, as investors remained cautiously optimistic for further stimulus action to bolster the world's largest economy. The Nikkei ended up 0.4% while the Shanghai Composite was down 0.8% and the Hang Sang slipped 0.1%.

Further, the Indian rupee extends losses to 55.44/445 versus its previous close of 55.21/22. Traders cite government-driven demand for dollars, which they say could be tipped to defence payment.

European shares were trading with marginal losses in early deals as investors turned cautious ahead of the US Federal Reserve policy meet which ends today. The CAC-40 was down 0.4%, FTSE-100 down 0.1% and the DAX was trading flat with positive bias.

On the sectoral front, BSE Oil and Gas, PSU, Bankex, Capital Goods, FMCG indices were the top gainers up 0.4-0.8% each. The Healthcare Index was the top loser down 0.9% on profit taking after recent gains

In the oil and gas space, index heavyweight Reliance Industries was up 0.5% after the company late Wednesday said it plans to drill one gas well and convert two sick oil wells into gas wells on the MA oilfield in the predominately gas-rich KG-D6 block as part of its attempts to boost gas production.

ONGC was up 1.5% after select public sector undertaking companies (PSU) were in focus ahead of Cabinet Committee on Economic Affairs (CCEA) meeting today to consider the disinvestment plan.

ICICI Bank was up nearly 1% after the largest private sector lender in the country, has slashed interest rates on retail term deposits by 50 basis points. The revised rates are with effect from Tuesday, the private lender said on its website.

L&T was up 0.8% after its construction arm won order worth over Rs 1,000 crore.

Two-wheeler majors Bajaj Auto and Hero MotoCorp were up 1-2% each on value buying at lower levels after recent losses.

Among other shares, Panacea Biotec is continues its upward rally and locked upper circuit of 10% at Rs 130 on the Bombay Stock Exchange. The stock has zoomed 74% in past four trading sessions from Rs 74.50 after India's second largest vaccine manufacturer has entered into a strategic partnership with Osmotica Pharmaceuticals.

BGR Energy Systems has dipped 4% at Rs 263 on turning ex-dividend today. The board of directors of the company at its meeting held on May 30, 2012, had recommended a dividend of Rs 7 per equity share of Rs 10 each for the financial year  2011-1

The broader markets have witnessed profit taking at higher levels and both the BSE Midcap and Smallcap indices are trading flat with positive bias.

The market breadth turned negative with 1,330 losers and 1,223 gainers on the BSE.