Sensex up 300 pts; ICICI Bank up 3.5%

HDFC Bank, ITC, L&T and RIL among the major movers

Markets continue to trade strong with the benchmark indices up 1.5% on account of strong global cues. At 1020 hrs, the Sensex was up 324 points at 20,542 and the Nifty gained 99 points to trade at 6,095.

The broader markets advanced gains with both the mid and smallcap indices gaining 1% each.

The drop in Brent crude prices by more than $2 a barrel following a breakthrough nuclear deal between world powers and Iran over the weekend added to the positive sentiment. The fall in oil prices will narrow the current deficit and help keep inflation under check.

Also, the rupee was trading strong in morning trade due to dollar sale by exporters and banks.At 1020 hrs, the Indian currency was trading at Rs 62.48 compared with Friday's close of Rs 62.83 per dollar. However, currency dealers see month end dollar putting pressure on the rupee later during the day.

Most Asian share indices were trading higher with the exception of Shanghai Composite which was down 0.4%. Japan's Nikkei led the gainers in the region up 1.3% on the back of a weaker yen. Further, the Hang Seng and Straits Times were marginally up 0.1% each.

Back home, all the sectoral indices continue to remain in the positive territory with banks and capital goods indices leading gains, up  2% each.

Realty, PSU, FMCG, Auto, Oil & Gas, Metal and Consumer Durables indices were up 1-1.9%.

Infosys marginally in the red by 0.1% was the only losers among the Sensex-30.

ICICI Bank, HDFC Bank, L&T, Hero MotoCorp, Tata Motors and ONGC up 2-3.7% were the top gainers in the morning deals.

ITC, Maruti Suzuki, Sesa Sterlite, SBI, Hindalco, Jindal Steel, Cipla, BHEL, HDFC, Tata Power, RIL, Gail India and Bajaj Auto up 1-1.9% were the other notable gainers.

In individual stocks, DIC India was locked in upper circuit of 20% at Rs 283 on NSE after the company informed exchanges that its promoter DIC Asia Pacific Pte Ltd has indicated a price of Rs 260 for the proposed delisting. The de-listing offer price is about 10% premium to DIC India’s closing price of Rs 235.5 on Friday.

Pfizer surged 6% to Rs 1,516 after announcing a special interim dividend of 36000% or Rs 360 per share.

Wyeth rallied 14% to Rs 926 after the board of directors of the pharmaceutical company approved the merger of the company with Pfizer.

The market breadth was strong with 1276 advances and 412 declines on the BSE.