Markets end higher led by index heavyweights

RIL, Infosys and ICICI Bank lead gains

Markets surged to end over 2% higher on Friday, amid strong global cues after ECB's bond buying programme, led by index heavyweights.

The 30-share Sensex provisionally ended up 348 points at 17,694 and the 50-share Nifty ended up 104 points at  5,343.

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(Updated at 14:41hrs)

Markets continued to trade firm with the Sensex up 337 points (1.9%) at 17,683 and the Nifty added 101 points at 5,339. Global cues as well as buying interest in heavyweights have helped markets to gain.

In the broader markets, the midcap and the smallcap indices continued to underperform with 1% gains each as compared to the 1.8% gain on the Sensex.

Asian markets soared after the European Central Bank outlined its bond buying scheme in an attempt to draw a line under the region's debt crisis. Stronger-than-expected jobs data from U.S. private sector, which bode well for the key U.S. non-farm payroll figures due out on Friday, also encouraged investors to cover their bearish bets. Nikkei added 2.2%, Shanghai Composite soared 3.7% and Hang Seng jumped 3.7%, respectively.

In the European markets, CAC gained 1% along with DAX up 0.7%. 

The rupee continued to rule firm against the American currency in late morning session by gaining 23 paise to 55.43 against dollar on sustained selling of dollars by banks and exporters.

All the sectoral indices traded in the positive zone. BSE capital goods index jumped 2%, followed by metal, realty and bankex.  Auto and oil & gas indices were up nearly 2% each as well.

From the Capital Goods space, L&T and BHEL added 2-3% each.

Tata Steel, Hindalco, Sterlite, Sesa Goa, Jindal Steel and Hindustan Zinc up 2-5% were the movers in the metal space.

Among the banks, ICICI Bank, Canara Bank, Axis Bank, Yes Bank and SBI gained 2-4%

Index heavyweight, Reliance Industries gained over 3% after CLSA raised its target price on Reliance stock to Rs 850 from Rs 790 while maintaining its "outperform" rating. CLSA believes that a combination of growth, benign consensus expectations, below-average valuations and buyback support will help the upmove.

Shares of oil marketing companies were under pressure after Jaipal Reddy, union petroleum minister said there was no immediate plan to raise price of petrol or any oil product. Bharat Petroleum Corporation (BPCL) slipped 1%, Hindustan Petroleum Corporation was down 2% at Rs 302 and Indian Oil Corporation (IOC) slipped 0.5% to Rs 246.

Among individual stocks, Deccan Chronicle Holdings was up 8% at Rs 13.16 on reports that the company has put its Indian Premier League franchises Deccan Chargers for sale.

The market breadth remains strong with 1718 stock advances as compared to 989 declines on the BSE.