Markets continue to cheer easing WPI rate

Rate sensitives extend gains

Indian shares continued to add gains in afternoon trades on rate cut hopes by the Reserve Bank of India by early next-year after country's headline inflation eased unexpectedly.

At 3PM, Bombay Stock Exchange's Sensex index gained 60 points to 19,289  while the National Stock Exchnage's Nifty-50 index rose 18 points at  5,869.

Meanwhile in Asia, Shanghai Composite has surged 4% to 2,142 on the back of a survey indicating further improvement for the nation’s beleaguered manufacturing sector, with Shanghai’s market surging. Hang Seng and Straits are up as well.

BSE realty index has added 1% to 2069. Metal, bankex and IT indiecs are up half a per cent each. Meanwhile, weakness can be seen in BSE consumer durables index which is down a per cent at 7784.

SBI is leading the gainers lists - up 1.7% at Rs 2300. TCS is up 1.5%. Market heavyweight - Reliance, is the top mover in the Sensex.

Tata Motors has extended Thursday's gains triggered by its British car unit Jaguar Land Rover (JLR) reporting good November sales. The stock is up 1.5% at Rs 292.

Metal stocks have moved up as a preliminary version of HSBC's manufacturing Purchasing Managers' Index hit a 14-month high in December 2012. Sterlite, Jindal Steel, Tata Steel and Hindalco are up 0.5-1.5% each.
The BSE mid-cap rose 0.4% while small-cap fell 0.02%.

The overall breadth is negative as 1,455 stocks have declined while 1,372 stocks declined on the BSE.