Nifty at highest level since January 5, 2011

BSE Realty, Bankex and Auto indices have spurted by nearly 3% each. Sectors like Capital Goods, PSU, Oil & Gas, Metal, Healthcare, Power, Consumer Durable and FMCG have gained between 1-2%.

Key share indices have reached near day’s high in late morning deals led by strong buying among financials and auto shares. Nifty is at highest levels since Jan 5, 2011, hits 28 month high.

By 1135, the Sensex was up 410 points at 20,132 and the Nifty has gained 124 points to 6,119. The Sensex and the Nifty reached an intra-day high of 20,141 levels and 6,117 mark, respectively.

Nifty is at highest level since Jan 5, 2011, hits 28 month high

On the global front, Asian share markets were mixed on Wednesday, with Australian equities dented by weakness in mining firms while Tokyo stocks surged to a 5-1/2-year high as Japanese exporters rallied after the yen's recent slide.   

Japan's Nikkei share average climbed above the psychologically key 15,000 threshold for the first time since January 2008, getting a boost from the weak yen, which helps Japanese exporters.   

Back home, the rupee today rose by five paise to 54.76 against the dollar in early trade at the Interbank Foreign Exchange on selling of the US currency by exporters.

On the sectoral front, BSE Realty, Bankex and Auto indices have spurted by nearly 3% each. Sectors like Capital Goods, PSU, Oil & Gas, Metal, Healthcare, Power, Consumer Durable and FMCG have gained between 1-2%.

Shares of rate sensitive sectors such as banking, real estate and automobiles are trading higher on hopes of more interest rate cuts after the headline inflation fell within the Reserve Bank of India (RBI)’s comfort zone.

HDFC is the top Sensex gainer, up nearly 5%. State Bank of India, HDFC Bank, ICICI Bank and Punjab National Bank from banking, Indiabulls Real Estate, DLF and Unitech from realty and Tata Motors, Maruti Suzuki, M&M and Hero MotoCorp from auto sector are trading higher by over 2% each on the Bombay Stock Exchange.

Wholesale Price Index (WPI) inflation for April 2013 moderated for the third straight month to 4.89%, a 41-month low as compared to 5.96% in the previous month and 7.50% in April 2012. RBI’s comfort level for inflation is between 4% and 5%.

Other notable gainers include ONGC, JSPL, DRL, Bharti Airtel and Reliance Inds.

Among other shares, Vikas WSP has surged 14% to Rs 33.10, extending its previous day’s 20% rally, on re-launching of futures trading of guar gum and seeds on commodity exchanges.

Meanwhile, BSE Midcap index has gained by 1.44% whereas BSE Smallcap index is trading higher by 1.05%.

The market breadth in BSE remains healthy with 1,106 shares advancing and 474 shares declining.