Markets surge on strong global cues

Benchmark indices gain 2% each

Markets surged to end over 2% higher on Friday, amid strong global cues after ECB's bond buying programme, led by index heavyweights. The 30-share Sensex provisionally ended up 337 points at 17,684 and the 50-share Nifty ended up 104 points at  5,342.

In the broader markets, the midcap and the smallcap indices continued to underperform with 1% and 0.7% gain respectively as compared to the 2% gain on the Sensex.

Asian markets soared after the European Central Bank outlined its bond buying scheme in an attempt to draw a line under the region's debt crisis. Stronger-than-expected jobs data from U.S. private sector, which bode well for the key U.S. non-farm payroll figures due out on Friday, also encouraged investors to cover their bearish bets. Nikkei added 2.2%, Shanghai Composite soared 3.7% and Hang Seng jumped 3.7%, respectively.

In the European markets, CAC and DAX gained 1% each while FTSE marginally advanced by 0.2%

The rupee continued to rule firm against the American currency in late morning session by gaining 26 paise to 55.40 against dollar on sustained selling of dollars by banks and exporters.

All the sectoral indices traded in the positive zone. BSE capital goods index jumped 3%, followed by metal, realty,bankex and auto up 2%.Consumer durables and oil & gas indices were up 1.8% each as well.

From the Capital Goods space, L&T and BHEL added 2-4% each.

Tata Steel, Hindalco, Sterlite, Sesa Goa and Hindustan Zinc up 2-6% were the movers in the metal space.

Among the banks, ICICI Bank, Canara Bank, Axis Bank, Yes Bank and SBI gained 2-5%

From the FMCG space, Hindustan Unilever closed for the day with a 2.3% gain at Rs 538 after hitting a record high of Rs 540, its record high on the BSE on revival of monsoon.

Index heavyweight, Reliance Industries gained 3% to close at Rs 791 after CLSA raised its target price on Reliance stock to Rs 850 from Rs 790 while maintaining its "outperform" rating. CLSA believes that a combination of growth, benign consensus expectations, below-average valuations and buyback support will help the upmove.

Shares of oil marketing companies were under pressure after Jaipal Reddy, union petroleum minister said there was no immediate plan to raise price of petrol or any oil product. Bharat Petroleum Corporation slipped 1%, Hindustan Petroleum Corporation was down 2% at Rs 303 and Indian Oil Corporation (IOC) closed flat with a negative bias at Rs 246.

Among individual stocks, Deccan Chronicle Holdings (DCHL) is trading higher by 10% at Rs 13.45 on reports that the company has put its Indian Premier League (IPL) franchises Deccan Chargers for sale.

Vadilal Industries surged 13% at Rs 249, its historic high on back of over two-fold surge in trading volumes on the Bombay Stock Exchang.

Mahindra Ugine Steel Company (MUSCO) has soared 15% at Rs 56 on back of heavy volumes, after the company said it has formed a new joint venture (JV) company, Mahindra Sanyo Special Steel Private Ltd, following the financial closure of its joint venture.

The market breadth was strong with 1777 stock advances as compared to 1084 declines on the BSE.