Markets pare gains, Sensex up 160pts

The markets rallied to a fresh two-month high of 19,575, but has now pared some of the gains owing to profit taking at higher levels. Banking and auto stocks are the major losers in the last half hour of trades. The BSE benchmark index is now up 158 points at 19,448.

The NSE Nifty has added 41 points to 5829.
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(Updated at 1200 hrs)

The markets continue their sublime form for the eight straight day so far. The Sensex after yet another gap-up opening (up 50 points) has moved from strength-to-strength and the BSE benchmark index is now up 223 points at 19,514.

The NSE Nifty has rallied past the 5800-mark and is now up 63 points at 5851.

Sustained buying support from the FIIs coupled with lack of any major negative triggers are seen as the prime reasons for the market rally. Further today, Food Inflation for the week ended March 19, 2011, has dropped to 9.5% from 10.05% a week ago.

IT stocks are leading the up move, the BSE IT index has rallied nearly 2% to 6543. Capital Goods, FMCG and Oil & Gas indexes are also up over 1% each.

IT major Infosys is the largest contributor the up move, the stock has added 46 points to the Sensex overall gains. TCS too plays its part with an addition of 23 points. Meanwhile, Reliance has added 27 points and ICICI Bank has added 22 points.

Hero Honda is the top gainer in terms of per cent age among the Sensex 30 stocks - up nearly 4% at Rs 1,612. TCs, Infosys and ONGC have gained 2-3% each.

Larsen & Toubro, Bajaj Auto, Jindal Steel, HDFC Bank, DLF and Tata Power are the other major gainers.

On the other hand, Mahindra & Mahindra has slipped nearly 3% to Rs 690. Cipla and Reliance Communications have dropped 2% each.

The market breadth is positive - out of 2,575 stocks traded so far, 1,427 have advanced and 1,040 have declined.