Markets in fine fettle

The markets are in a good groove in the afternoon session. The Sensex is currently quoting at 18954, higher by 224 points and the Nifty is within teasing distance of the crucial psychological level of 5,700 at 5,691, up 66 points. The midcap index is at 7016, higher by 54 points and the smallcap index is at 8444, up 87 points. All the sectoral indices are in the green, with FMCG registering the maximum gains of 1.5%.

The BSE benchmark had registered modest gains of around 50 points at opening bell, after drifting lower in the past three consecutive sessions, and has spiralled upwards thereafter to emerge as the top performer among the Asian bourses. On a day when the Asian markets had a mixed session, with the Seoul, Straits Times and Hang Seng registering marginal gains, while the Taiwan and Nikkei edging lower, the bourses back home have gained more than a percent. The European markets, including the FTSE, CAC and DAX, are in the positive in early trades.

Bharti Airtel has raced ahead by 3.4% at Rs 396 to top the gainers list on the BSE on reports that it has announced plans to invest approximately $1 billion in 2011 to expand its network in Nigeria. There is selective buying in the metal space, with Jindal Steel strengthening by 2.3% at Rs 654 and Hindalco gaining 2.2% at Rs 193. And index heavyweight Reliance Industries (RIL) has risen by about a percent on reports that the petroleum ministry has recommended the $7.2 billion RIL-BP deal to the Cabinet Committee on Economic Affairs (CCEA) for its approval.

Sterlite is the sole stock to buck the momentum, shedding 0.7% at Rs 170. 

The market breadth is extremely positive as 1767 stocks have advanced while 906 stocks have declined.