Markets edge higher led by index heavyweights

Markets traded firm in morning session this Tuesday on back of buying witnessed in index heavy-weights after two-day drop.

At 10:20AM, the Bombay Stock Exchange's 30-share index Sensex rose 120 points at 19,729 while the National Stock Exchange's 50-share was up 39 points at 5,978.  

Global risk appetite was positive after U.S. manufacturing unexpectedly contracted in May, dimming speculation that the Federal Reserve will reduce stimulus.

Asian shares traded mixed with Hong Kong’s Hang Seng declining 0.2% to 22,231, China’s Shanghai Composite declined 0.7% to 2,283, Singapore’s Straits Times fell 0.4% to 3,277 while Japan’s Nikkei rose 0.5% to 13,337 today.

Back home, capital goods, healthcare, banks, real estate indexes gained while IT, consumer durables and technologies lead the declines on the BSE.

The gainers on the Sensex included Larsen & Toubro added 2.5%, Hero MotoCorp gaining 2%, Reliance Industries rose 1.3%, Hindalco Industries rose 1%, Cipla was up 2.4%, while ICICI Bank gained 1.4%on the BSE.

The laggards were Tata Motors falling 0.5%, Infosys shed 1% while TCS was down 0.5% on the BSE.

The key notable movers were, Hero MotoCorp up nearly 2% after the company late Monday said that robust demand for its range products has helped achieve highest-ever monthly sales in May and record sales for any non-festival period for Apr-May 2013.

Shares of Tata Communications were up nearly 4% at Rs 202 in early trades after the company announced a 'Telepresence' deal with China Mobile.

Lanco Infratech surged over 7% at Rs 9.41 after the company late Monday announced that its has bagged new orders worth Rs 3,294 crore.

The broader markets were up with mid-caps and small-caps gaining nearly 0.7% on the BSE.

The market breadth was positive. Out of 1,435 stocks traded, 942 stocks gained compared to 431 declines on the BSE.