Markets gain on global optimism

Sun Pharma, HDFC Bank, ITC, Infosys, L&T and Reliance Industries among the top gainers

Markets gained in the noon trades on the back of buying in heavyweights like Sun Pharma, HDFC Bank, ITC, Infosys, L&T and Reliance Industries. At 1400 hrs, the Sensex was up 115 points at 19,440 and the Nifty gained 48 points to trade at 5,859.

Also, the markets took positive cues tracking a recovery in the rupee from a record low of 61.21 in the previous session. Today's gain was on account of the new tough rules for derivatives trading in the currency market set in by India's regulators in a bid to arrest the steep decline of the rupee.

The broader markets too gained with both the mid and smallcap indices gaining 0.6% each, in line with the BSE benchmark index.

Meanwhile, there were positive trades in the global markets too with both the Asian and European markets trading higher.

Asian shares gained, taking heart from a rally on Wall Street spurred by strong U.S. job data last week, while the U.S. dollar held near a three-year high against a basket of currencies.

But Chinese shares underperformed on concerns over Beijing's credit reform drive to rebalance the economy and as unexpectedly high inflation data shut out any near-term possibility of monetary support for economic growth.

Japan's Nikkei share average rose 2.3%, looking set to hit a six-week closing high, while MSCI's Asia-Pacific ex-Japan index rose 1.2%.

The rally came after U.S. S&P 500 index gained 0.5%, to 1,640.46, while the index's futures contract gained another 0.4% in Asian trade on Tuesday.

European shares on the broad FTSEurofirst 300 opened up 0.6% and core and peripheral euro zone debt made early gains as a deal to drip-feed Greece the latest 6.8 billion euro installment of its bailout added to the upbeat mood.

Back home, all the sectoral indices were in the green gaining atleast 0.1% in noon trades. The ones leading gains were Power, Consumer Durables, Health Care, Capital Goods, Bankex and Realty indices gaining between 1-2%.

The top gainer among the Sensex-30 was Sun Pharma which was up nearly 4% after the company had recommended issue of bonus shares to existing shareholders in the ratio of 1:1, yet to announce record date for the same.

BHEL, Bajaj Auto, Sterlite, Dr Reddys Lab, L&T,HDFC Bank, Tata Power, NTPC, SBI, Cipla and Infosys up 1-3% were the other notables gainers.

ITC, Tata Steel, HDFC, Wipro and Reliance Industries too advanced 0.6-0.9%.

Among the ones in the red were Jindal Steel, Mahindra & Mahindra, Hindustan Unilever, Maruti Suzuki, ONGC, Coal India and Bharti Airtel losing 0.4-1.6%.

In other stocks, Just Dial has surged 12% to Rs 763, its record high since listing, on back of heavy volumes on the National Stock Exchange.

Tribhovandas Bhimji Zaveri (TBZ) surged 13% to Rs 208 in noon deals, after jewellery maker said the foreign institutional investors have acquired an additional stake in the company through open market purchases.

The market breadth was positive owing to the strength in broader markets. 1,210 stocks advanced while 910 stocks declined on BSE.