Markets hold on to gains in late noon deals

BSE CD, Realty indices lead

The markets held on to gains in the late morning session with the BSE Sensex at 16,861, up 142 points and the Nifty at 5,114, up 46 points.

Earlier in the day, the BSE benchmark index touched the day's high at 16,894 and the day's low at 16,805.

In Asia, Japan's Nikkei share average rebounded on Monday as a euro zone decision to pump up to $125 billion into Spain's struggling banks eased investors' fears about contagion from the country's financial sector. The index is currently at 8,625, up 2%. The Shanghai Composite and Hang Seng indices have advanced 1-2% each.

Meanwhile, The rupee surrendered early gains but was still trading with a gain of 12 paise at 55.30 against the American currency. The rupee resumed higher at 55.10 per dollar as against the last weekend's level of 55.42 at the Interbank Foreign Exchange (Forex) Market as banks and corporates sold dollar in view of fresh capital inflows from foreign funds coupled with firm trend in stock markets.

On the sectoral front, all the indices are witnessing positive trades except for BSE Healthcare index, down 0.5%.

BSE Consumer Durables, Realty, Power, Metal and Bankex indices are leading the gains, having gained 1-3% each.

Among Consumer Durables, Videocon Industries up 7% was the top mover on reports that Texas-based Anadarko Petroleum, the operator of the Rovuma Offshore Area 1 in southern Africa, is expected to shortly announce a significant upgrade in estimated reserves in the basin. Videocon holds 10% each in six blocks in the deep-water Rovuma Basin, off the Mozambique coast through their wholly owned subsidiaries.

Sterlite Industries has gained 4.4% at Rs 105 and is the top gainer on the Sensex. Other prominent gainers include Tata Power, Bajaj Auto, Coal India and Hindustan Unilever, up 2-4% each. The losers from the space are Cipla and Sun Pharma Industries, down 1% each. ONGC has declined marginally.

Among individual stocks, Suzlon Energy has rallied 3% to Rs 18.55 after foreign currency convertible bond (FCCB) holders gave the company extension to repay them. The FCCB holders approved a 45-day extension for repayment after it sought extension from bondholders to repay FCCBs maturing on June 12. The company is trying to raise as much as $300 million in foreign currency loans to repay its $360 million liability.

Ashok Leyland is trading higher by nearly 2.5% at Rs 27.2 on the Bombay Stock Exchange (BSE) after it announced the completion of an export order for buses worth $7.6 million. The company has supplied 100 'Falcon' buses to Ghana worth $7.6 million. "These vehicle were inducted into the fleet of Metro Mass Transit Limited, a transport company in which the Government of Ghana has 45% stake," its said in a filing to the BSE.

The overall market breadth is positive as 1,645 stocks have advanced against 810 declining ones, on the BSE.