Volatile trades continue; Bank stocks gain

Weakness persists in IT shares following Wipro results, Mid-caps outperform benchmark index

Markets continued to be volatile in late noon deals with buying interest visible in banks and consumer durables shares. The volatility is likely to extend as traders roll over their positions from the near month April to May series on Thursday. The Sensex touched a high of 19,145 and was now up 99 points or 0.5% at 19,115. Nifty was up 39 points at 5,822.

A positive market in Asia ended in the green. The Nikkei average climbed 1.9 percent to its highest close in almost five years on Monday, as the yen weakened after the Group of 20 leading economies stopped short of criticising Japan's   expansionary monetary policies.The Nikkei ended up 251.89 points at 13,568.37, its highest closing level since July 2008.

Broader markets edged up as well. The BSE mid-cap index out-performed the benchmark index and rose 0.8% at 6,273. Small-cap index added 0.5% at 6,009.

The banking space gained ahead of the RBI meet on May 3rd on hopes of a rate cut by the RBI. The BSE bankex was up 2% at 14,341. From the space, HDFC Bank is up 3.6% at Rs 698. ICICI Bank and SBI are up 1.5% each.

Consumer durables, capital goods and power indices were up 1.5-4% each. FMCG stocks gained on reports of likely normal monsoon this year. FMCG companies derive a substantial revenue from rural markets. However, weakness continued in IT index - down 2.5% at 5,753. IT major, Wipro came out with its quarterly results and a dissapointing guidance on Friday.

Coal India has surged 4% to Rs 311 on reports the Cabinet Committee on Economic Affairs may meet today, 22 April 2013, to discuss coal price pooling. Larsen & Toubro, BHEL and Hero MotoCorp are up 2-3% each. Markets heavyweight - Reliance was up 1% at Rs 789.

On the other hand, Wipro slipped 8% at Rs 338  after the company forecast weak sales at its technology division for the current quarter ending June 2013. Wipro forecast revenue of $1.58 billion to $1.61 billion for its IT services business for the quarter ending June quarter, compared with $1.59 billion March quarter.

Infosys shed 2.3% at Rs 2242, followed by Dr Reddy's, Bajaj Auto and ONGC.