Markets continue to trade firm

Realty, bank, metal shares surge

Markets continued firm trades with buying interest seen in realty, metal and banking shares. The BSE Sensex has gained 386 points (over 2%) at 18,407, after touching a high of 18,456. Nifty is up 118 points at 5,553.

"The positive momentum is likely to continue up till the US elections which is scheduled in the first week of November," said Jagannadham Thunuguntla Strategist and Head of Research, SMC Global Securities Ltd.

Meanwhile, India's wholesale price index (WPI) rose a higher-than-expected 7.55 percent in August from a year earlier, mainly driven by higher food prices due to deficient monsoon, government data showed on Friday.

From the sectoral pack, BSE realty index has jumped 4.3% to 1,626. Metal index is up 3.8% after the U.S. Federal Reserve announced another aggressive stimulus plan to buy mortgage-related debt and other assets until the outlook for jobs improves. BSE bankex, consumer durables and auto indices are up as well. However, BSE healthcare index has bucked the trend and is down 0.3% at 7,593.

Hindalco has surged 7% to Rs 117. Jindal STeel is up 5.4%. Banking names - ICICI Bank and SBI are up 5% each. ICICI Bank, along with heavyweight Reliance, accounts for a 110 points rally on the Sensex.

Among other gainers are Tata Motors, Tata Steel, Larsen & Toubro and Maruti Suzuki.

Shares of airline companies have seen huge trading activities on the bourses ahead of Cabinet Committee on Economic Affairs (CCEA) meeting today to consider the proposal of foreign direct investment (FDI) into the sector. Jet AIrways is up 4%, while Spice Jet and Kingfisher have soared 6-9% each.

Grasim Industries rose 2.5% to Rs 3,112 after the firm and Omikenshi Co. on Thursday said they have entered into an agreement to jointly develop new international markets for several functional rayon products.