Markets pare gains on spike in inflation

The markets have pared gains in the last few minutes following a spike in inflation numbers. The food inflation for the week ended January 16 spurted 17.40% from 16.80% a week ago. The Sensex is now up 10 points at 16,300, and the Nifty is up eight points at 4,861.
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(Updated at 1145 hrs)

The markets have held on to their gains in the past one hour. The Sensex is at 16,473, higher by 183 points, and the Nifty is at 4,916, up 63 points. The mid-cap and small-cap indices have also gained more than a per cent each.

The BSE realty index has surged 3%, while metals, IT and healthcare indices have added over 2% each.

Wipro has rallied 3.7% to Rs 678. M&M has gained 3.3% at Rs 1046 and DLF has added 3.1% at Rs 327.

Index heavyweight, Reliance, has strengthened by 1.7% at Rs 1043. Tata Steel, SBI and HDFC are the other notable gainers.
 
However, Larsen & Tourbo continues to trade weak and is now down 1.7% at Rs 1,435. ITC and Bharti Airtel are also trading weak.

The BSE market breadth is positive. Out of 2,667 shares traded on the BSE, there are 1,731 advancing stocks as against 873 declines.