Bulls unfazed by spike in food inflation

Markets have continued to gain this afternoon on positive cues from global markets, brushing aside a rise in inflation numbers.

Global cues had pushed Sensex above the 17,000 mark after 11 days today. The index touched a high of 17,062 on buying in metal stocks.

The Sensex is now near its high at 17,048 - up 307 points..

The Nifty is up 93 points at 5,113.

Food inflation rose to 16.5% for the week ended May 22 on account of high prices of pulses, fruits and vegetables. Inflation increased by 0.32 percentage point from 16% in the previous week.

Reliance Communications has jumped 3.5% to Rs 160. Hero Honda and Sterlite has gained 3% each at Rs 2,043 and rs 654, respectively.

Hindalco, Hindustan Unilever and Tata Motors have added 2.8% each. ACC and ONGC have advanvanced 2.5% each to Rs 847 and Rs 1,212, respectively.

Reliance is up 2% at Rs 1,033. HDFC Bank, Infosys, Mahindra & Mahindra, Wipro and DLF have added around 2% each.

Other prominent gainers include Maruti Suzuki, Larsen & Toubro, Tata Steel and SBI.

Market breadth continues to be positive. More than 1,985 stocks are to teh advancing side, as against 677 stocks to the declining side. A total of 2,753 stocks have been traded.