Sensex gains over 100 pts; IT shares surge

Benchmark indices have extended early gains with Sensex and Nifty trading over 21,200 mark and 6,300 levels, respectively. Financials and software shares are witnessing significant buying demand.

The market sentiment is boosted by data showing that foreign funds were net buyers of Indian stocks on Thursday, 26 December 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 743.70 crore on Thursday, 26 December 2013, as per provisional data from the stock exchanges.

By 10:35, the Sensex was higher by 114 points at 21,188 mark and the Nifty gained by 31 points at 6,310 levels.

According to Ravi Nathani, Technical analyst of Nsetoday.com, “Nifty Index has strong resistance around 6330; close above this level would attract some fresh buying for near term.”

On the global front, most Asian share markets notched up gains on Friday after another powerful performance by Wall Street, while Japanese economic data impressed and the dollar briefly broke the 105 yen barrier for the first time in five years.

Shanghai made the running with a rise of 0.8 percent as money rates eased and China set its yuan at an historic high. MSCI's broadest index of Asia-Pacific shares outside Japan managed to add 0.25 percent.

Supporting sentiment was another record close for the Dow, while the S&P 500 brought its gains for the year so far to 29%.

Tokyo's Nikkei also started well enough but the early six-year peak attracted profit-takers and nudged it 0.3% lower. Still, the index remains 55 percent higher for the year, its best annual performance since 1972, driven by Japan's aggressive fiscal and monetary stimulus.

Back home, the rupee opens above the 62 mark, but soon falls from session highs to trade at 62.11/12 versus its previous close of 62.16/17 as month-end dollar demand from oil importers continues to weighs.

BSE Realty, IT, Bankex and Consumer Durables indices have gained by 1% each. Apart from Oil & Gas, all the major BSE sectoral indices are trading in positive zone.

The major gainers on the Sensex at this hour include Sesa Sterlite, Infosys, TCS, Wipro, SBI, HDFC, L&T, Tata Motors and ICICI Bank.

On the losing side, BHEL, Maruti Suzuki, ONGC, RIL and Bharti Airtel slipped between 0.2-1%.

Gitanjali Gems has surged nearly 14% to Rs 76.40, extending its past three days rally, on back of heavy volumes on the BSE.

Monsanto India has rallied over 14% to Rs 852 on back of heavy volumes on reports that the Environment Minister Veerappa Moily is likely to approve genetically modified (GM) food crops in the country.

Indraprastha Gas is trading higher by 3% at Rs 273 on reports that the company has increased prices of compressed natural gas (CNG) in Delhi by Rs 4.50 per kg and Rs 5.15 per kg in Noida, Greater Noida and Ghaziabad.

The broader markets are trading in line with the benchmark indices- BSE Midcap and Smallcap indices are up 0.4-1%.

The market breadth in BSE remains healthy with 1,159 shares advancing and 651 shares declining.