Markets continue firm trades

All sectoral indices in green

Markets continued to trade firm in afternoon deals with the Sensex up 228 points or 1.7% at 16,924. Nifty was up 89 points at 5,131. Buying interest was witnessed across the board, along with strong cues from global markets.

In Asia, markets jumped as a pledge from the European Central Bank to keep the euro zone intact and Samsung Electronics Co.’s record profit buoyed sentiment. Hang Seng jumped 2%. Nikkei gained 1.5% while Kospi and Taiwan markets surged over 2% each.

BSE metal index gained 2.7% to 10,255. Bankex and consumer durables indices added around 2% each, followed by FMCG and Realty indices.

Tata Motors added 4.2% to Rs 214. Metal shares shone with Sterlite and Tata Steel gaining 4% each. Hindalco added 3.4%. HDFC Bank advanced 3.8%, followed by Tata Power and Bharti Airtel.

Market heavyweight - Reliance, moved up 1.8% at Rs 724. ITC posted 20.21% rise in net profit to Rs 1,602.14 crore for the first quarter ended June 30, 2012, on the back of robust sales across non-cigarette FMCG businesses. Shares of ITC were up 2%.

ICICI Bank has soared almost 5% to Rs 949 after the private sector lender reported a better-than-expected 36% year-on-year (yoy) grwoth in net profit at Rs 1,815 crore for the quarter ended June 2012, on back of higher interest income. Analysts, on an average, expected net profit of Rs 1,709 crore for the quarter. Net interest income grew 19% at Rs 3,695 crore on yoy basis.

Among other banks, Union Bank of India posted a 10% increase in net profit at Rs 512 crore for the quarter ended June 2012 as against Rs 464 crore in the same period a year ago. Shares of Union Bank dipped 7% to Rs 166.

On the other hand, Hero MotoCorp delcined 1% at Rs 2018. Cipla and Dr Reddy's slipped marginally in trades.

BSE market breadth is positive. Out of 2,614 stocks traded, 1,494 shares have advanced while 994 shares have delcined.