Benchmark indices are edging higher, amid a broad based rally, led primarily by metal, auto and select index heavyweights.
At 10:20AM, the 30-share Sensex was up 232 points at 27,473 and the 50-share Nifty was up 70 points at 8,271.
In the broader market, both the BSE midcap and smallcap indices have performed better than the front-liners with gains of around 1% each. Market breadth in BSE is positive with 1,427 advances against 479 declines.
Meanwhile, foreign institutional investors were net buyers in Indian equities to the tune of Rs 40 crore.
BSE Metal index, up over 2% has gained the most followed by BSE Realty and Auto indices which have gained over 1.3% and 1.9% each. BSE Power and Capital Goods indices have gained close to 1% each.
The promulgation of coal block ordinance has led to strong buying in metal stocks. Sesa Sterlite has gained around 5% while Tata Steel and Hindalco have gained close to 2% each.
BHEL has gained over 1% amid media reports that the PSU engineering major is eyeing opportunities in Mozambique and Laos.
L&T has gained around 1% after the company said it has bagged an offshore contract valued at Rs 894 crore from the Oil & Natural Gas Corporation (ONGC).
ONGC has gained over 1%. Media reports suggest that ONGC and Cairn India, up 0.9% are going to develop and produce gas from the Barmer block in Rajasthan. GAIL too has gained around 1% while RIL has gained around 0.3% after the company said it has planned turnaround at its Nagothane manufacturing site.
Auto stocks are trading firm ahead of the release of monthly sales volume data for the month of December due later in this week. Tata Motors has gained around 2% followed by Bajaj Auto and Hero Motocorp which have gained around 1% each. Maruti Suzuki and M&M have gained around 0.6% each.
Bharti Airtel has gained over 1%. The comapny has clarified that the additional charges for VOIP calls for using services like Skype and Viber are not going to be introduced immediately while the company is also going to come up with affordable plans for its postpaid users.
Among index heavyweights, ITC, Infosys and ICICI Bank have gained around 0.5% each.