Markets extend gains led by bank shares

BSE Bankex has surged by almost 2% followed by counters like Realty, Capital Goods, PSU, Metal, Power, IT, FMCG and Oil & Gas, all gaining by 1% each.

Benchmark indices have extended the gains led by buying demand among banking, software and FMCG shares. Firm opening of the European markets has further cheered the sentiments among local investors.

By 1430, Sensex surged by 207 points at 19,569, and the Nifty up 62 points or 1.05% at 5,912 levels.

Ahead of the RBI’s monetary policy review on March 19th, the whole sale price index inflation stood at 6.84% in February 2013, as against 7.56% in the corresponding period in the previous year. Inflation was declining for four months in a row till January. In January 2013, WPI inflation was at 6.62%.

On the sectoral front, BSE Bankex has surged by almost 2% followed by counters like Realty, Capital Goods, PSU, Metal, Power, IT, FMCG and Oil & Gas, all gaining by 1% each. However, BSE Consumer Durable index has declined by almost 2%.

From the banking and financial space, Axis Bank, HDFC Bank and ICICI Bank recovered in afternoon trades and analysts see no risks to these stocks due to reports of online newspaper Cobrapost that these banks allegedly indulged in money laundering. Axis Bank, HDFC Bank and ICICI Bank are up between 1-3%. All these stocks fell in early trade today after money laundering allegations made by Cobrapost. SBI is the top Sensex gainer, up over 3%. HDFC has gained by nearly 1%.

Capital Goods majors like L&T and BHEL have gained between 1-2% on renewed buying demand. Capital goods shares were trading lower after recent data showed contraction in industrial output.

Index heavyweights Reliance Inds and Infosys have gained between 0.4-1%.

Infosys' stock saw a spike in response to its 3QFY13 results and has moved in a range ever since. The brokerage believes that 3QFY13 may only have been the first quarter of a visible momentum in the company's growth, and that there is further upside in the stock from current levels, Motilal Oswal said in a report. The brokerage has a target price of Rs 3,260 for Infosys.

Meanwhile, Infosys today bagged an order from German car-maker BMW group.

Other notable gainers are Maruti Suzuki, HUL, JSPL, ONGC, Tata Power and Tata Steel have gained between 1-3%.

On the losing side, Consumer Durables Index is the top loser among the sectoral indices on the BSE for the fourth straight session, down almost 2% after high inflation for the past few months has led to lower discretionary spends. The sectoral index has lost over 7% so far since Friday’s close of 7,264.

Among the stocks in the index, Gitanjali Gems and Titan are down over 3%, while Whirphool, Symphony and Rajesh Exports are down 1% each. Blue Star and TTK Prestige are trading in positive zone.

Among other shares, Asian Paints is trading higher by about 3% to Rs 4,915, also its new high on BSE, after the paint maker said that its promoters released part of pledge shares lying with lenders in last week.

The market breadth in BSE remains weak with 1,443 shares declining and 1,282 shares advancing.