Markets near day's high led by index heavyweights

BSE Oil & Gas, Healthcare and IT indices have surged by 3% each followed by counters like TECk, Banks, Realty, PSU, Power and Metal, all gaining between 1-2%

Benchmark indices have extended gains and are trading near day’s high amid firm global cues, along with buying among index heavyweight shares like Reliance Inds and Infosys leading the gains.

Meanwhile, the Indian rupee gained today, backing off from a record low hit in the previous session, as the country's current account deficit (CAD) narrowed in the January-March quarter, easing some concerns about the funding of the deficit.  

India's current account deficit hit a record high 4.8% of gross domestic product in the fiscal year that ended in March, fuelled by rising imports of oil and gold, but was lower than an expected gap of 5%, giving a boost to the battered rupee. India's current account deficit may widen because of money outflows, Finance Minister P. Chidambaram said on Thursday.

By 1425 PM, Sensex jumped by 308 points at 18,859, and the Nifty was up 90 points or 1.60% at 5,678 levels. The Sensex and the Nifty have touched an intra-day high of 18,898 levels and 5,693 mark, respectively.

On the global front, Japan's Nikkei share average climbed 3% on Thursday, bouncing back from a three-day losing streak, as fears of a U.S. stimulus pullback and a Chinese credit crunch eased.

The benchmark posted its biggest one-day percentage gain in 13 sessions as regional markets firmed. The Nikkei advanced 379.54 points to close at 13,213.55. It had dropped 3% over the past three days.

Back home, BSE Oil & Gas, Healthcare and IT indices have surged by 3% each followed by counters like TECk, Banks, Realty, PSU, Power and Metal, all gaining between 1-2%. However, BSE Consumer Durable indices have declined by nearly 2%.

Shares of oil and gas companies are in limelight ahead of Cabinet Committee on Economic Affairs (CCEA) meeting today to decide on raising natural gas prices for the first time in three years. Oil and Natural Gas Corporation of India (ONGC) and Reliance Industries have surged by 4% each.

Software exporters continued to trade higher on the back of a weakening rupee. Infosys and TCS have gained between 3-3.5%.

Financial shares are also up on short covering and bargain hunting after the recent correction. HDFC Bank, HDFC, ICICI Bank and SBI are up 0.4-4% each.

From the healthcare space, Sun Pharma is the top Sensex gainer, up over 5%. Dr Reddy’s Lab and Cipla have gained between 2-4%.

Among other shares, Tech Mahindra and Mahindra Satyam have rallied over 5% each, extending their past few days gains, on back of heavy volumes ahead of merger.

The market breadth in BSE remains marginally positive with 1,108 shares advancing and 1,092 shares declining.