Positive trades continue

IT index leads gains banks, FMCG slip

Markets continued to trade with marginal gains in late morning deals with the Sensex up 38 points at 19,753 and the Nifty up 15 points at 6,008. Both the benchmark indices hit fresh two-year highs in early trades with the Sensex touching 19,786 and the Nifty touching 6,017 for the first time since January 2011.

The rupee depreciated by 10 paise to 54.45 against the US dollar in early trade today on the Interbank Foreign Exchange due to appreciation of the American currency against the euro and other currencies in overseas markets.

Many Asian stocks opened with mild gains following the previous session's rally as investors look ahead to negotiations on the US debt limit and spending cuts.Hang Seng was flat with a positive bias while Taiwan Weighted, Straits Times, KLSE Composite and Jakarta Composite added 0.5-1%.

Among the sectoral indices, BSE IT index is leading the gains. The index has jumped 1% at 5742. OIl & gas is up 0.5% at 8696 on the back of Reliance. PSU, metal and power sectors are also trading in green. However, BSE FMCG index has slipped 0.4% at 5906.Consumer durables and capital goods have also slipped in trades.

The gainers list is being led by Dr Reddy's - up 2% at Rs 1,878. Sterlite and Tata Steel dfrom the metal pack are up 1% each. IT space has seen buying interest. TCS and Infosys have added 1% each while Wipro is up 0.3% at Rs 395.

Among other key gainers are NTPC, Bajaj Auto, Bharti Airtel and Tata Motors.

On the other hand, FMCG shares have shown some weakness. ITC leads the losses - down 0.6% at Rs 284. HUL is marginally down at Rs 529.

Sun Pharma. Tata Power, Cipla and Mahindra & Mahindra are in the red as well. Index heavyweight - Reliance and ICICI Bank are trading mixed.