Markets continue smart upmove

Markets have extended gains. The Sensex jumped 248 points (1.3%) to 18,479. Nifty was up 83 points at 5,556.

BSE mid-cap has gained in line with the benchmark. The index was up 1.3% at 6,877. Small-cap index, however, added 0.8% to 8,218.
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(Updated at 1244 hrs)

Markets recovered smartly on gains in realty and banking stocks. The Sensex had turned volatile in late morning trades after reports came in suggesting a slowdown in GDP growth. However, it regained strength and touched a high of 18,471 - up 237 points. Nifty surged 77 points to 5,550.

India's GDP growth slowed down to 7.8% in March - lower than the anticipated 8.3%. The manufacturing sector grew 5.5% in January-March from a year earlier, while farm output rose an annual 7.5%, the data showed.

BSE FMCG, realty and bankex gained 1.5-2% each in trades. FMCG stocks rose on hopes of a good monsoon after the rains hit Kerala two days earlier than expected. The Indian Met Department has predicted a normal monsoon this year.

Among FMCG stocks ITC surged 2.6% to Rs 193. Marico added 3% to Rs 142. Godrej Construction Company, HUL and Dabur India advanced 1-2% each.

Realty stocks rose. Unitech and DLF rebounded post their fall on Monday after reporting quarterly numbers. Unitech was up 1.5% at Rs 35 while DLF gained 2.5% to Rs 237. Orbit Corp jumped 3.3%, followed by Gorej Properties and Sobha Developers.

"At current juncture, we believe that the valuations of most sectors have been reasonable. Some sectors that offer good medium-to-long term potential are banking, infrastructure and pharmaceuticals," says Dinesh Thakkar, CMD, Angel Broking.

Metal stocks jumped on renwed buying interest. Jindal Steel gained 3.3% to Rs 237. Sterlite was up 2% at Rs 171. Banking stocks - HDFC Bank, ICICI Bank and SBI gained 1-2% each.

Among the Sensex stocks, only Cipla lost 0.8% to Rs 327.

BSE market breadth was positive. Out of 2,679 stocks traded, 1,671 advanced while 901 declined in trades.