Markets trim gains, FMCG stocks firm

The markets remained positive in late-morning trades as buying was visible across all sectors. The BSE Sensex is at 17,142, up 89 points and the Nifty is at 5,218, up 34 points.

Earlier in the day, the BSE benchmark index touched the day's high at 17,230 and the day's low at 17,061. The markets had witnessed a strong opening this trading session, following positive global cues.

In Asia, Japan's Nikkei share average rose more than 2% to hit its highest level since the massive earthquake and tsunami on March 11 last year, buoyed by indications the US Federal Reserve may keep its supportive monetary policy. The benchmark Nikkei was up 216.74 points at 10,235, while the broader Topix climbed 2.2% to 870. The Hang Seng index has advanced 1.6% while the Shanghai Composite index is marginally up.

On the sectoral front, BSE Consumer Durables, Realty and FMCG indices are leading the gains, up 1-2% each.

Rajesh Exports, Titan Industries, VIP Industries and TTK Prestige, up 2-4% each, are the notable gainers from the Consumer Durables' space. United Spirits, Hindustan Unilever, Colgate-Palmolive (India) and Dabur India, up 2-4% each, are the top gainers from among the FMCG stocks.

Sterlite Industries, up 3% at Rs 111.5, is the top gainer among the Sensex 30 stocks. Cipla, Hindustan Unilever, HDFC and DLF, up 2-3% each, are the other prominent gainers from the pack. The losers from the space are Maruti Suzuki, BHEL, Coal India, Tata Power and Jindal Steel, down 1-2% each. Maruti Suzuki India is trading lower by 2.4% at Rs 1,267.3 after the Maharashtra government has proposed hike in road and registration tax on vehicles in its budget 2012-13. Maharashtra, and particularly Mumbai, is a key market for carmakers and is estimated to contribute as much 13-14 % of national sales.

Among individual stocks, Sadbhav Engineering is trading higher by 4% at Rs 155 on winning road project worth of Rs 1,220 crore from the National Highways Authority of India (NHAI).

Subex Limited has moved higher by 2% at Rs 26.20 after the company said it has bagged multi-million dollar Revenue Operation Centre (ROC) deal in APAC.

Tata Metaliks has rallied 3% to Rs 69.70 after the company said its board has approved an issue of preference shares worth Rs 100 crore to its promoter, Tata Steel.

The overall market breadth is negative as 1,251 stocks have declined against 1,113 advancing ones, on the BSE.