Markets extend gains led by financial shares

Benchmark indices have extended the gains led by buying among banks, metal and software shares.

By 1120, the Sensex is up 107 points at 18,991 and the Nifty has gained 38 points to 5,732. The Sensex and the Nifty reached an intra-day high of 19,038 levels and 5,746 mark, respectively.

On the global front, Japan's Nikkei share average rose to a 4-1/2 year high on Thursday as exporters gained on the news of the US Federal Reserve's pledge to maintain stimulus, and expectations of further monetary easing by the Bank of Japan's new leadership. The Nikkei rose 1.2% to 12,618.01 at the midday break.

In early trade, it rose as high as 1.4% to 12,650.26, its highest level since early September 2008, which is also a resistance level for the Nikkei. The level is the 50% retracement of its slide from late February 2007 to late October 2008, when the global economy suffered its worst recession since the Great Depression of the 1930s.

Back home, the rupee today gained 14 paise to 54.22 against the dollar in early trade at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

On the sectoral front, BSE Bankex, Metal, Consumer Durables, Capital Goods and IT indices have surged by 1% each. However, BSE Auto index has declined by over 1%.

The main gainers on the Sensex at this hour include Bharti Airtel, ICICI Bank, JSPL, HDFC, GAIL, Hindalco, Sterlite, SBI and Tata Steel, all surging between 1-6%.

On the losing side, Tata Motors has dipped almost 4% on the back of heavy volumes on the bourses. According to Reuters report, the commercial vehicle maker is planning to raise Rs 300 crore ($55.13 million) through 26-month bonds at 9.15%.

Other notable losers include HUL, Bajaj Auto, NTPC, Maruti Suzuki, ONGC and Sun Pharma.

Among other shares, Balmer Lawrie and Company has surged 8% to Rs 625 after the company said that its board will consider a maiden bonus issue.

Meanwhile, BSE Midcap index has gained by 0.26% whereas BSE Smallcap index is almost flat.

The market breadth in BSE remains positive with 1,225 shares advancing and 999 shares declining.