Markets continue firm trades

Markets continued to trade on a firm note in afternoon deals with the Sensed gaining 97 points at 17,950. Nifty was up 21 points at 5,410.

Meanwhile, the growth in July 2012 index of industrial production (IIP) was 0.1% higher as compared to the level in the month of July 2011. The cumulative growth for the period April-July 2012-13 over the corresponding period of the previous year stood at -0.1%.

The rupee rose by 10 paise to 55.24 against the dollar in late morning deals as the American unit weakened against euro and other currencies overseas.Forex dealers said euro's gain against the dollar ahead of a German court ruling on the euro zone's bailout fund and a higher opening in the equity market supported the rupee.

Asian shares edged higher on Wednesday as investors remained cautiously optimistic a German court would approve the legality of the euro zone's bailout fund later in the day and the U.S. Federal Reserve may deliver further stimulus measures this week. Hang Seng and Nikkei were up over 1% each while the Shanghai Composite was marginally down on profit taking.

Most of the sectoral indices are in the green with IT index leading the gains. BSE IT index is up 0.8% at 6,088, followed by auto, consumer durables and capital goods indices. However, BSE power index is down 1% at 1,866.

Tata Motors was up 3% at Rs 257 after the company said it is evaluating options for setting up a manufacturing base in Indonesia to serve the country and the ASEAN region. Coal India and DR Reddy's added 2% each. followed by software shares which rose ahead of the two-day US Federal Reserve meet which could announce stimulus measures to boost the sagging US economy. Software majors earn most of their revenues from exports to the US. TCS and Wipro were up over 1% each while Infosys was trading with marginal gains.

ICICI Bank and HDFC Bank are up half a per cent each on hopes that cut in key policy rates by the central bank would boost credit growth going forward.

However, Jindal Steel continues to be weak, down 3% at Rs 324. BHEL, Cipla, Hindalco and Hero MotoCorp are also down around 1-2% each.

Among inidvidual stocks, Siemens has dropped 3.7% at Rs 673 on BSE on reports Siemens AG, the promoter of the company, may sell part of its holding in the Indian company.

Cadila Healthcare has slipped 1.2% at Rs 937, with the stock sliding on profit booking after 4-day 6.35% rally. Meanwhile, Dr Reddy's Laboratories is up 2% at Rs 1,757 after the company said it has launched Metoprolol Succinate tablets used for treating high blood pressure in the US market.

BSE market breadth remained positive. Out of 2,749 stocks traded, 1,416 shares have advanced while 1,209 shares have declined.