Markets extend gains in the late morning trades led by financials and a supportive Asian markets. The Sensex was up 113 points at 16,792, gaining 91 points from the day's low of 16,701. The Nifty gained 37 points at 5,091.
In the broader markets, the midcap index gained 0.4% and the smallcap index added 0.2% underperforming the Sensex, up 0.6%.
The Asian markets were broadly in the green. Shanghai Composite, Jakarta Composite and Kospi Composite down 0.1-0.6% were the only exceptions. Some of the markets which firmed up were Hang Seng, Taiwan Weighted and Straits Times which gained between 0.5-1 % on reports that central banks will take action to prevent a credit squeeze if turmoil hits the markets was limited by bearish sentiment ahead of the pivotal Greek election.
All the sectoral indices, except Capital Goods down 0.1% were in the green on the BSE. The ones leading the gains included rate sensitives like Bankex, Realty and Auto indices up 0.7-0.8% along with Oil & Gas and Consumer Durables.
Rate sensitives gained ahead on the likelihood of a rate cut by the RBI in its mid-quarter policy review. ICICI Bank, HDFC Bank, Punjab National Bank up 1-1.5% were the major gainers in the banking space.
All the major auto scrips were trading higher. Hero MotoCorp, Tata Motors, Mahindra & Mahindra and Maruti Suzuki gained between 0.4-2%.
The other notable gainers among the Sensex stocks were Coal India, Hindalco, Sun Pharma, Hindustan Unilever, Gail India and Wipro added 1-2%.
Index heavyweight, Reliance Industries advanced 1.2%.
Among the losers were Bajaj Auto, Sterlite, BHEL and L&T down 0.5-1%. HDFC continued to trade in the negative, down 0.3% for the second consecutive day after foreign brokerage house, Macquarie downgraded the stock.
Among other stocks, Corporation Bank and VST Industries were trading lower by over 4% each after turning ex-dividend today.
The market breadth was positive. 1190 stocks advanced while 894 stocks declined on the BSE.