Rate sensitives led rally set to help markets end higher

Markets opened on a firm note, tracking cues from Asian indices. Market heavy-weight, Reliance's strong quarterly performance also had a positive response as the stock gained in opening trades.

The biggest contributor to the market's upmove is banking major, ICICI Bank. The Bank had come out with its numbers late on Friday. It reported a jump in Q2 net at Rs 1,395 crore.

The Nifty, helped by these strong corporate earnings and buying in realty and banking spaces surged to a high of 6,132 in late noon trades. The index is now up 107 points at 6,125.

Trading in the BSE Sensex had been halted since 1200 hrs following a technical glitch where members were facing problems in getting trade confirmations. However, the same seems to be resolved and trading resumed at 1430 hrs.

Given the steady trend in European markets and US futures, it seems like our markets are likely to end on a strong note. The Euroepan indices - FTSE, CAC and DAX are trading with gains of 1% each. Also, the US market futures - the Dow Jones futures are trading 70 points higher.

Rate sensitive banking and realty stocks have risen. Realty's star is Jaiprakash Associates which came out with its numbers today. The company reported a 87% drop in Q2 net profit at Rs 115 crore. The stock, however, has jumped 3% to Rs 124.

"Triggers in terms of timely commissioning of Hydro power for JPVL, increased land sales in JPI and JPA and pick-up in cement cycle fares well for upsides in stock. We maintain an 'Accumulate' rating on the JP Associates" says Prabhudas Lilladher.

Bank Nifty has gained 3.2% to 12,736 on buying in ICICI Bank. Canara Bank, HDFC Bank, Axis Bank, Bank of India and Oriental Bank of Commerce are some of the other gainers. Investors are now awaiting the RBI policy review scheduled for Tuesday. A rate hike by 25 bps is being expected by analysts. The Reserve Bank of India has decided to extend the special liquidity measures up to November 4.

IT stocks have gained on a buying spree. CMC has soared 12% to Rs 2,384. Fianncial Technologies, OFSS and Infosys are the big gainers in the space today.

Asian markets ended in green as China's Purchase Managers Index spiked to 54.7 from 53.8 in September higher than the median projected pulling the Shanghai Composite up 2.5%. The Hang Seng jumped 2.4% to 23,652. Tokyo market was weighed by concerns over the outlook for earnings and a strong yen.

Suzlon has surged 4% to Rs 58 - recovering from its low of Rs 55. Mahindra & Mahindra, BPCL, Bharti Airtel, HDFC and Sun Pharma are some of the other Nifty gainers.

However, Maruti Suzuki has slipped 2.6% to Rs 1,511. Credit Suisse has downgraded the stock to neutral from outperform following the run up in the stock price.

Hero Honda, NTPC and Gail are some of the other losers. Sail is down marginally at Rs 194.