Markets gain momentum

It is turning out into a productive session for the markets. As the sedateness witnessed in mid-morning trades slowly yields to a renewal in buying interest, thanks to the positive vibes emanating from the European markets, the Sensex has clawed back within kissing distance of the intra-day high of 16,601. The barometer index is quoting at 16554, higher by 145 points and the Nifty is at 4960, up 41 points. The midcap and smallcap indices are trading 0.2% higher at 6801 and 8609 respectively.

The FTSE, CAC and DAX have added up to a percent each in early trades and have been responsible for lifting our bourses from the stupor that had set in the middle of the morning.

Meanwhile, food Inflation rose by 0.05 per cent to 16.49 per cent for the week ended May 8, from 16.44 per cent in the previous week, mainly due to high prices of vegetables and fruits. But the prices of non-food articles declined by 0.35 per cent as raw rubber prices sank 7 per cent and linseed fell 2 per cent and fuel prices remained steady over the week, but rose 12.33 per cent on an annual basis.

ONGC continues to hog the limelight and is now up 8.6% at Rs 1117. And the FMCG stocks are back in the reckoning. Hindustan Unilever has strengthened by 2% at Rs 238 and ITC has added 1.7% at Rs 263. SBI, Reliance Communication and NTPC are the other notable gainers. 

Grasim continues to languish in the red. The cement major has weakened by 2.8% at Rs 2503, Jaiprakash Associates has shed 2.7% at Rs 117 and DLF has lost 2.1% at Rs 272.

The market breadth is positive. Out of 2270 stocks traded on the BSE, there are 1230 advancing stocks as against 944 declines.