Markets continue to trade firm

The markets continued to edge higher in the noon trades with the BSE benchmark index, hitting an intra-day high of 17,732 led by bank shares.

The Sensex gained 71 points at 17,656 and the 50-share Nifty added 29 points at 5,369.

In the broader markets, the smallcap and the midcap indices are up 0.6% each, outperforming the Sensex, up 0.5%

In other markets, the Asian shares rose and the euro steadied on Friday after a flood of cheap European Central Bank funds this week eased fears of a meltdown in the euro zone financial sector, overriding some weak data and concerns about surging oil prices. The top gainers among the Asian indices were Shanghai Composite, Hang Seng up 1% each.

Among the sectoral indices, bankex up 2.5% was top gainer. Banking stocks rallied on the bourses on buzz that the Reserve Bank of India (RBI) may cut the cash reserve ratio (CRR) to ease the tight liquidity situation in the system before the scheduled mid-quarter review on March 15. The ones leading the gains were Yes Bank,Axis Bank, Kotak Mahindra Bank, ICICI Bank, Federal Bank and Union Bank which gained between 3-4%.

Capital Goods, Health Care and Metal indices up 1% each were the other top sectoral gainers.

On the other hand, Realty index was down nearly 2% after DLF  dipped nearly 6% to Rs 202, extending its previous day’s 5% loss, on report that the Canadian research firm Veritas said the accounting practices of the realty major is “conflicting” and pointing at gaps in its business model — charges the company termed “mischievous and presumptive”.

Apart from the banking stocks, the movers among the Sensex stocks were Sun Pharma, L&T, Jindal Steel,NTPC and Tata Steel up 1-3%

Bajaj Auto, ONGC, Sterlite and Hindustan Unilever down 1-2% were the top Sensex losers.

Among other stocks, Lupin rallied 5% to Rs 506 on back of huge volumes. The stock was trading near to its lifetime high market price of Rs 519.79 touched on November 30, 2011.

The market breadth was positive owing to the strength in the broader markets. 1570 stocks advanced while 1047 stocks declined on the BSE.