Markets at day's high on growth optimism

Broader markets mixed in afternoon session

Markets extended gains in afternoon session after the Congress-led UPA government  raised the growth projection for fiscal year 2013-14 and simultaneously lowering the Inflation target for Asia's third-biggest economy.

At 12:30PM, the Bombay Stock Exchange's 30-share index Sensex gained 115 points  to trade at  19,128.22   while the National Stock Exchange's 50-share Nifty rose  29 at 5790.

India's economy may grow at 6.1-6.7% for the year 2013-14, the government forecast in a report on Wednesday, a day prior Finance Minister P. Chidambaram unveils a austere budget.

 Asian markets rebounded on Wednesday after encouraging data from the US and the Federal Reserve's assurance to continue with monetary stimulus measures. However, investors remained cautious after Italy's hung parliament in the general elections could hinder reforms in the euro zone and drive up borrowing costs.

Most Asian indices were trading marginally higher except for Japan's Nikkei which was up 0.9%. Strait Times, Hang Seng, Taiwan, Kospi and Shanghai gained between 0.02-0.30% each.

Back home,  capital goods, real-estate, banks sectors  gained on BSE.

The broader markets traded mixed with mid-caps gaining 0.13% and small-caps falling nearly 0.22% on BSE.

The market breadth is negative. Out of 2,577 stocks traded, 1,401 stocks declined compared to 1,044 advances on BSE.