Financials lift Sensex 200 points higher

Axis Bank, ICICI Bank, HDFC, HDFC Bank and SBI up 2-3% among the top gainers

Benchmark indices gained in noon deals with the Sensex up 200 points at 20,664 and the Nifty added 62 points to trade at 6,135. The uptick was powered by financials and auto stocks.

The broader markets were steady with both the mid and smallcap indices up 0.7% each, almost in line with the BSE benchmark index.

Rupee

The rupee is trading lower at 62.15 vs previous close of 61.84/85, tracking negative regional stocks and FX cues. The upticks will be sold near 62.30. I am looking at a 61.70-62.30 range for the day, says a dealer with a forex firm.

Sectors and Stocks

Except the FMCG index, all the sectoral indices were in the green with Auto, Metal, Power, Capital Goods and Bankex indices up 1-2%, leading the gains.

Financial stocks gained after the Finance Minister in the interim budget yesterday made a provision of Rs 11,200 crore for infusing capital in public sector banks and also forecasted GDP growth rate of atleast 5.2% in the last two quarters of the current fiscal. Axis Bank, ICICI Bank, HDFC, HDFC Bank and SBI up 2-3% were the top gainers.

Auto stocks continued its uptrend after the government provided relief to the sector by reducing the excise duty by 4-6% across two-wheelers, cars, utility vehicles and commercial vehicles. Maruti Suzuki up 3% was the top gainer followed by Tata Motors, Hero MotoCorp and Mahindra & Mahindra which added 0.4-1.5%.

Metal names like Tata Steel, Hindalco and Sesa Sterlite gained 0.5-1.5%.

Tata Power, Gail India, Cipla, Coal India, ITC and Bharti Airtel down 0.5-1.3% were the notable losers.

The market breadth was positive on the BSE. 1,303 stocks advanced while 1,133 stocks declined.

Global Markets

Japanese shares surged and the yen sagged after the Bank of Japan doubled loan programs aimed at stimulating bank lending and economic growth, while most other Asian shares were softer after solid gains in recent sessions.

Japan's Nikkei average rose as much as 3.5% after the BOJ extended and expanded special loan facilities aimed at driving more funds through the banking sector to borrowers.

The extension had been expected as the schemes were set to expire in March.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.1% as Chinese shares slid from two-month highs after the Chinese central bank drained funds from money markets.

Meanwhile, the European shares started lower on account of profit taking after hitting a three-week high the previous day. CAC, DAX and FTSE were marginally down by 0.04-0.1%.