Broader markets outperform; Mid-cap index up 1%

The broader markets outperformed benchmarks as investors shifted focus to fundamentally sound mid-cap shares

The broader markets outperformed the benchmark indices in noon trades on Monday as investors shifted focus to fundamentally sound mid-cap and small-cap shares available at attractive valuations.

At 1:00PM, the 30-share Sensex was up 127 points at 20,919 and the 50-share Nifty was up 46 points at 6,222.

The BSE Mid-cap index was up 0.9% and the Small-cap index was up 1.1%.

Government bonds eased in early trades on Monday, tracking the stronger rupee buoyed by better-than-expected September quarter GDP numbers. The rupee was trading at Rs 62.17 compared with previous close of Rs 62.44 per dollar. Asian currencies, which were mostly trading firmer, also helped the rupee.

Meanwhile, global brokerage firm Goldman Sachs has predicted that rupee will gradually depreciate to Rs 65 versus dollar by November next year from the present 62 to a dollar.

In a report dated November 28, Goldman said while higher inflation compared to trading partners may keep the Indian currency on a structurally depreciating path, an improving balance of payments may limit the extent of depreciation in the near term.

Asian markets were trading firm on better-than-expected PMI data from China. The government of China said that manufacturing growth stood at 51.4 in November against expectations of just above 51.

The BSE Healthcare index was the top gainer among the sectoral indices on the BSE up 1.9% followed by Capital Goods, Bankex, Realty, Metal, Power and Auto indices.

Sun Pharma was up 3.3% while index heavyweights ICICI Bank, Reliance, and ITC were among the other top gainers contributing the most to Sensex gains.

Engineering major Larsen & Toubro was up 2.2%, extending its past two day’s nearly 4% rally after the company said it is evaluating options for monetisation of assets belonging to its subsidiary L&T Infrastructure Development Projects Ltd (IDPL).

State Bank of India , the country's largest lender, was up 1.5% after it said it will raise up to Rs 9,576 crore through a share sale to institutional investors or a follow-on public offer.

Among other shares, Ranbaxy Laboratories has rallied over 6% to Rs 449 on back of heavy volumes on the bourses.The counter has seen a heavy trading activity with a combined 3.8 million shares have already changed hands till noon deals against an average sub 2 million shares that were traded daily in past two weeks on the BSE and NSE.

Market breadth was positive with 1,326 gainers and 828 losers on the BSE.