Markets at day highs led by banks

Benchmark share indices were trading near their day highs led by bank shares on expectation the Reserve Bank of India could announce a cut in the cash reserve ratio.

According to a government release earlier today, the Index of Industrial Production for February 2012 stood at 4.1%.

The BSE Sensex was at 17,371, up 172 points after toucing a high of 17,395 and the Nifty at 5,285, up 58 points after touching a high of 5,291.

On the global front, Asian shares firmed up after a weak start with Hang Seng, Shanghai and Nikkei up 0.7-1.8% each. 

Among the sectoral indices on the BSE, Bankex, Capital Goods, FMCG and Auto were the top gainers with rise over 1.4% each.

BSE Bankex was the top gainer up 1.8%. Among Sensex shares, ICICI Bank and SBI were up over 2% each while HDFC Bank and HDFC were up over 1% each.

Indexheavyweight Reliance Industries was up 1% at Rs 740.

BSE Capital goods index have spurted over 1.4% after IIP data showed that capital goods growth stood at 10.6%. BHEL and L&T have surged between 1-2%.  

In the FMCG pack, both ITC and HIndustan Unilever were up between 1-2% ahead of inflation data due Friday on hopes that inflation would ease further.

AMong other shares, Neyveli Lignite has surged 9% to Rs 92.85 on hopes of the government nod for its proposed joint venture to set up a Rs 10,000 crore thermal power project in Uttar Pradesh (UP).

“The company and the UP government which has given its in-principle approval to allocate 2,500 acres of land and also 80 cusecs of water, have initiated the process for entering into a MoU with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for setting up the plant with 50:50 equity participations,” the PTI report suggests.

Market breadth was strong with 1,698 gainers and 820 losers on the BSE.