Markets gain in late morning deals

IT, banking names buoy Sensex

Markets continued to move up in late morning deals with the Sensex gaining 163 points at 17,350. Nifty is up 46 points at 5,255.

The markets are likely to be range-bound during this truncated week amid sluggish foreign fund inflows, mixed corporate results and continued weak investor sentiment.

Asian shares inched higher on Monday as weaker-than-expected US growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading will likely be subdued with Japanese and Chinese markets closed. The Hang Seng is up 1.4% at 21,034.

BSE realty index has gained 2% at 1,711. IT and bankex have advanced 1-2% each. However, auto index has seen some selling pressure and dropped marginally in trades.

DLF has gained 3.5% at Rs 189. From the IT space - TCS and Infosys have added around 2.5% each. Together, the two IT shares account for a 54 point rally on the Sensex.

ICICI Bank, Tata Power, Hindalco, SBI and Sterlite have added over 1% each.

Maruti Suzuki has dipped 2% to Rs 1,368 after reporting a marginal 3% y-o-y drop in net profit at Rs 640 crore for the quarter ended March 2012. However, analysts had expected a net profit of Rs 544 crore from the country's biggest car maker. Net sales grew 17% at Rs 1,149 crore on y-o-y basis.

Canara Bank has become the latest to slash interest rates on loans, reducing its base rate by 25 basis points to 10.5%. The new rate comes into effect from Tuesday. The stock is up 1.6% at Rs 437.

Bharat Heavy Electrical Limited (BHEL) and BGR Energy Systems are trading down by 1-2% each in opening deals on report that Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUN), a state government company, has scrapped EPC (Engineering, Procurement and Construction) tenders for upcoming new super critical units of Suratgarh and Chhabra thermal power stations.

BSE market breadth is positive. Out of 2,366 shares traded, 1,405 shares have advanced while 867 shares have delcined.