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Markets have come off morning highs as profit taking in Infosys and HUL weighed on the indices. At 1300 hrs, the Sensex was up 173 points at 28,241 and the Nifty was up 54 points at 8,456.
In the broader markets, the mid and smallcap indices were up 0.2% each.
Banking shares were in demand and trading higher by up to 6% after the Kotak Mahindra Bank announced that it was acquiring ING Vysya Bank in an all-stock deal.
Kotak Mahindra Bank, South Indian Bank, Karnataka Bank, Dhanlaxmi Bank, Lakshmi Vilas Bank and City Union Bank, Yes Bank, Axis Bank, ICICI Bank and ING Vysya Bank among the private sector banks are up 3-6%, while State Bank of India (SBI), Oriental Bank of Commerce, Bank of Baroda, Andhra Bank and Bank of India are up 2-4% on NSE.
Infosys, Tata Steel and HUL down 1-2% were the notable losers of the hour.
Asian Markets
Asian shares rose after U.S. data showed broad US economic strength, while the yen rebounded from overnight multi-year lows after Japan's finance minister warned that its recent weakening had been "too rapid".
MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.3%, though on track for a weekly loss of over 1%.
Japan's Nikkei stock average erased earlier losses and ended up 0.3%.
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(Updated at 1305 hrs)
Benchmark indices are trading firm amid a broad based rally which saw Sensex and Nifty touching fresh record highs of 28,321 and 8,482 respectively .
Bank shares have seen strong buying on expectations of more mergers and acquisitions in the banking sector following the acquisition of ING Vysya Bank by Kotak Mahindra Bank.
At 11:35AM, the 30-share Sensex was up 234 points at 28,302 and the 50-share Nifty was down 73 points at 8,475.
In the broader market, BSE midcap index, up 0.8% is moving in tandem with its larger peers while BSE smallcap index is marginally underperforming with a gain of 0.7%. Market breadth is positive with 1,496 advances against 1,005 declines
Buzzing Stocks
BSE Bankex is the lead gainer with more than 2% of gains followed by BSE Realty, Consumer Durables and Capital Goods indices with more than 1% of gains.
BSE IT index is losing around 1% while BSE Healthcare index is flat.
Banking shares public as well as private sectors are in demand leading to gains of up to 6% after the Kotak Mahindra Bank announced that it was acquiring ING Vysya Bank in an all-stock deal.
Kotak Mahindra Bank, South Indian Bank, Karnataka Bank, Dhanlaxmi Bank, Lakshmi Vilas Bank and City Union Bank, Yes Bank, Axis Bank, ICICI Bank and ING Vysya Bank among the private sector banks are up 3-6%, while State Bank of India (SBI), Oriental Bank of Commerce, Bank of Baroda, Andhra Bank and Bank of India are up 2-4%.
Meanwhile, State Bank of India (SBI) today reclaimed its position as the country's most valued bank with a total market valuation of over Rs 2.25 lakh crore, surpassing private sector player HDFC Bank.
From the auto space, Hero Motocorp and Tata Motors are up 1.6% and 1.8% each.
Cipla has extended gains from yesterday and is trading with a gain of more than 3%. The pharma company's Europe subsidiary Cipla Europe NV has signed a distribution agreement with Serum Insititute of India to market latter's vaccines in the Euopean market.
Metal shares have gained significantly with Hindalco leading the pack with more than 2% gain. Sesa Sterlite is up 1.5%. The central government, after allowing commercial mining in the coal sector, is now planning to permit companies to sell mines of all minerals, except atomic ones, by providing transferability under the mining law. Under the law in force at present, a company cannot sell mines it holds to other companies, though leases are transferred whenever a mining company is taken over.
IT shares have come under pressure. Infosys has lost more than 1%. Accoring to media reports, Insosys has denied the possibility of an audit of its back office divisions spread across 13 countries as was expected by analysts after its facility in Czech Republic overbilled Apple Inc.
Among other shares, shares of Future Consumer Enterprise are trading higher by 10% after Kishore Biyani-led Future Consumer Enterprise purchased Bangalore-based supermarket chain Nilgiris.
