Markets extend gains led by financials

SBI up nearly 3%

Markets continue to trade with marginal gains with the Nifty holding the 4,900 levels, amid positive cues from Asian, led by gains in financials and Reliance Industries. The BSE benchmark index, Sensex is up 45 points at 16,198 and the NSE benchmark index Nifty was up 13 points at 4,904.

Earlier in the day, the markets had a firm opening with the Sensex touching an intra-day high of 16,286 in early trades.

Meanwhile, the broader markets regained strength with both the Midcap and the Smallcap indices up 0.7% and 1% outperforming the Sensex which was marginally up by 0.5%.

In Asia, except Hang Seng and Jakarta Composite all the markets are trading in the green. The ones leading the gains are Kospi Composite, Taiwan Weighted gaining 0.5-0.8%.

Among the sectoral indices, Realty, Bankex, Power and Capital Goods indices gained 1% each in the late morning trades. However, IT and FMCG indices shed 0.3% each.

Among the top Sensex gainers SBI was up nearly 3% extending its previous day’s rally of over 5%, after reporting a better-than-expected net profit of Rs 4,050 crore for the March 2012 quarter, due to higher interest income and lower provisioning for bad loans.

Maruti Suzuki, Tata Power, Coal India, DLF, HDFC which increased its investment limit for FIIs from 74% to 100% and BHEL gained 1-2% were the other notable gainers. Index heavyweight, Reliance Industries is up 1% at Rs 695.

Among the losers were Tata Steel, Bajaj Auto, Infosys and ITC down 1% each.

Some of the other stocks which showed sharp movements were Himachal Futuristic Communications Ltd which hit the upper circuit filter of 20% at Rs 12.69 on reports that Reliance Industries plans to roll out its 4G network in partnership with the company.

Also, Force Motors surged 6.5% in early trades following a strong set of quarterly numbers.

The market breadth was very positive on the BSE with 1479 stock advanced and 705 declines.