Markets surge to day's high

Markets have extended gains in late-noon trades. The Nifty has gained 23 points at 6,083. Sensex is up 98 points at 20,354.

Gains in heavyweights like Infosys and ICICI Bank led the markets higher.

Suzlon, Tata Power, Tata Motors, BHEL and Infosys are among the top gainers. On the losing side, HDFC Bank, Kotak Mahindra Bank and Bajaj Auto are worth a mention.
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(Updated at 1249 hrs)

Markets have recovered from the low's of the day.

The Nifty touched one and a half month high of 6,087 in the morning session before slipping to a low of 6,062 on selling pressure in telecom and realty stocks. The index has recovered and is now trading at 6076 - up 16 points.

The Sensex is up 78 points at 20,334.

Markets have been volatile in a narrow range due to the futures & options (F&O) expiry today.

The government reveled key inflation data today. Food inflation has soared to 14.44% for week ended December 18 from 12.13% in the previous week.

"Inflation and rising interest rates are definitely a worry. However, since inflation is moderating, RBI may not shift to tighter monetary policy. In case it starts rising rapidly, then it might have to resort to stricter measures," feels Rishi Nathany, Director, Touchstone Wealth Planners.

Markets have also cheered the government's move to deferr the decision on a possible fuel price hike. A ministerial panel had been scheduled to discuss a possible rise in diesel and cooking gas prices on Thursday, 30 December 2010. A new date had not yet been fixed and gave no reasons for the cancellation.

Power stocks are shining today. Suzlon has gained 2.2% at Rs 53. Tata Power has jumped 1.3% to Rs 1,360.

ITC, Tata Motors, Gaul and Wipro have managed to gain nearly 1% each, along with Hindustan Unilever and Larsen & Toubro.

Meanwhile, Reliance Communications has dropped 1.3% to Rs 137.

Banking stocks are in red. Kotak Mahindra Bank and HDFC Bank have slipped 1% each to Rs 443 and Rs 2,304, respectively.

Other Nifty losers include Ranbaxy, Sail and BPCL.