Markets extend gains led by financials; IT bucks trend

Rate-sensitive sectors gained amid hopes that the central bank would ease monetary policy more aggressively next month

Markets edged higher in morning trades this Monday after the Bank of Japan’s stimulus policies were unopposed at a Group of 20 meeting.  

Meanwhile, rate-sensitive sectors such as banks, real-estate gained amid hopes that the central bank would ease monetary policy more aggressively next month to boost growth into the Asia’s third-biggest economy.

At 10 AM, the Bombay Stock Exchange's 30-share index Sensex rose 109 points at 19,127.78 while the National Stock Exchange's 50-share Nifty rose 45  points at 5,828.85.

Domestically investors’ sentiments remained jittery ahead of Parliament’s budget session starting today coupled with April derivatives expiry this Thursday in the truncated week.

Global risk appetite was, however, firm after the Bank of Japan Governor Haruhiko Kuroda reiterated on Monday that the Group of 20 leaders accepted that the country’s policy easing measures are aimed to defeat deflation.

Asian markets traded mixed with China’s Shanghai Composite Index down 0.15% to 2,235, Hong Kong’s Hang Seng rose 0.04 % to 22,021, Singapore’s Straits Times gained 0.17% to 3,299 while Japan’s Nikkei was up 2% to 13,585.

Back home, the key sectoral indices such as capital goods, consumer durables, autos, banks, healthcare , PSU gained while IT , FMCG sectors declined on the BSE.

The gainers on the Sensex included, Coal India rising 3%, HDFC Bank and SBI were up 2.4% and 1.6% respectively, Sun Pharma gained 2%, Hero MotoCorp added 2%, Jindal Steel and Tata Steel rose over 1% on the BSE.

The laggards included counters such as Wipro and Infosys shedding 10% and 1.6%, TCS dropped 0.2%, Dr Reddy’s was down 0.7%, Sterlite Industries fell 0.6% on the BSE.

The key notable movers are, HMT has rallied about 8% to Rs 39.25 after the government approved over Rs 1,000-crore revival package for watch and tractor maker that aims to modernise the company and help it turn around in five years.

Wipro has tanked 8% to Rs 340 in early morning trades on BSE after the company forecast weak sales at its technology division for the current quarter ending June 2013.

The broader markets gained with mid-caps and small-caps adding 0.5-0.6% on BSE.

The market breadth was positive. Out of 1,205 stocks traded, 781 stocks gained compared to 370 declined on BSE.