Markets surge over 2% led by financials
Banks, Capital Goods, Reliance lead gains
Markets ended more than 2% higher on Friday with the Sensex closing its highest level since July1,2011 led by financials and Reliance Industries.The index gained 403 points at 18,852 and the Nifty rallied to its highest closing since May 2011 at 5,694, adding 140 points.
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( Updated at 14:32 hrs)
Key benchmark indices have gained over 2% each in afternoon trades on the back of gains in banking, and capital goods shares. BSE Sensex was up 432 points at 18,781 - after touching a high of 18,866 earlier in the day. The Nifty was up 144 points at 5,698.
Meanwhile in Asia, Hang Seng has added 144 points while Nikkei is up 23 points at 9,110. Markets rebounded from yesterday's fall as investors took comfort from steadiness in U.S. stocks, shrugging off fears over soft manufacturing data from China, Europe and the United States.
Broader markets underperformed the benchmark indices. BSE mid-cap index is up 1.7% at 6,440. Small-cap index was up 1.6% at 6,818.
BSE bankex gained 4% at 13,039. Power, capital goods, metal, realty and PSU indices were up 3-4% as well. Meanwhile, IT index slipped into the negative, down 0.2%
Among the Sensex-30 stocks were trading in the positive zone today. Financials are leading the rally with ICICI Bank and SBI up 4-5%. the other major gainers were BHEL, Sterlite, Tata Power gaining 5-6%.
TCS and Dr Reddys Lab down 0.7% and 0.6% respectively were the only losers among the Sensex stocks.
Aviation shares continued their good run following the government's decision to allow FDI in domestic airlines. Jet Airways was up 2.8%, Spice Jet jumped 3.4% while Kingfisher soared 5.5% respectively.
The decision to allow 51% foreign direct investment has also impacted multi-brand retail shares. Pantaloons Retail zoomed 6%, followed by Reisix, Trent and Shoppers Stop.
BSE market breadth was positive. Out of 2,959 stocks traded, 1,779 stocks advanced while 1050 stocks declined on the BSE.