Markets trading near day highs

BSE Metal and Bankex indices have zoomed by almost 3% each

Key benchmark indices have touched fresh intra day high on broadbased buying demand among index heavyweights with the Sensex and the Nifty surging by nearly 2% each. Firm global markets have further boosted the sentiments.

At 1130 hrs, the Sensex was up 325 points at 16,966 after touching a high of 16,967. The Nifty gained 105 points to 5,148 after touching the intraday high of 5,150.

Meanwhile, the rupee failed to maintain its early gains and slipped by four paise to trade at 55.56 against the US currency on renewed dollar demand from banks and importers.

On the global front, Asian shares rallied on Friday, led higher by a strong result from smartphone giant Samsung Electronics, after the European Central Bank rejuvenated risk appetite and steadied the euro by signalling its resolve to defend the euro zone. Hang Seng, Nikkei, Kospi and Taiwan have gained between 1-2%.

Bach home, BSE Metal and Bankex indices have zoomed by almost 3% followed by counters like Power, Realty, Capital Goods, FMCG, PSU and Oil & Gas, all gaining by nearly 2% each. Infact, all the major BSE sectoral indices are trading in safe zone.

From the Metal space, Sterlite Industries is the top Sensex gainer, up nearly 5% after reporting better than expected numbers in the quarter ended June 2012. Other metal shares like Tata Steel, Hindalco and Jindal Steel have gained between 2-4%. Metal shares have gained momentum as metal prices rose on the London Metal Exchange (LME) yesterday.

Among banking and financial sectors, ICICI Bank has surged by nearly 4% ahead of its Q1 earnings scheduled to be announced today. SBI, HDFC Bank and HDFC have gained between 2-3%. Bank shares are up on hopes of a rate cut by RBI

According to reports, South India's largest cement manufacturer India Cements has availed itself of over Rs 500 crore from ICICI Bank and Axis Bank, apart from raising around $60 million from ICICI Bank. The funds will be used for the repayment of existing high cost debt, according to the company.

Power stocks like Tata Power and NTPC have gained between 2-3%.

Index heavyweight Reliance Inds has surged by nearly 2%.

Tata Motors is up nearly 5%. The stock witnessed steep fall during last few trading sessions. According to Mudit Goyal, technical analyst, SMC Global, "Tata Motors has corrected sharply from the high of 320 to 200 levels in very short span. From current levels, stock can give a good pull back upto 240 levels so one can make long in Tata Motors".

Other notable gainers include Bharti Airtel, Wipro, L&T, ITC, GAIL India, BHEL and Sun Pharma.

Among other shares, Deccan Chronicle Holdings has plunged 20% to Rs 18.40, its historic low in morning trades on the Bombay Stock Exchange. The stock has slipped 27% in past two trading sessions after managing director of Deccan Chronicle Holdings Ltd, publishers of Deccan Chronicle, Mr N. Krishnan, resigned.

Shares of Goldyne Technoserve and Amar Remedies are locked at lower circuit filter for the second day in a row on the Bombay Stock Exchange on buzz of margin calls from certain large brokerages and redemption by some small-cap global funds.

Sun TV Network and SpiceJet have tanked up to 40% on the bourses in morning trades on reports that the Central Bureau of Investigation (CBI) has questioned the Maran Brothers in Aircel-Maxis deal case.

Godrej Consumer Products has soared over 8% at Rs 659, also hits lifetime high, on the National Stock Exchange. The counter has seen huge trading activities with a combined 278,874 shares have changing hands so far, against an average around 162,000 shares that were traded daily in past two weeks.

In the broader markets, the small cap and the midcap indices have gained by over 1% each. The market breadth in BSE remains healthy with 1,535 shares advancing and 756 shares declining.