After a somewhat shaky start, the Indian stock market has surged higher this morning with investors indulging in some brisk buying in bank, realty, FMCG, metal and information technology sectors. Select pharmaceuticals and capital goods stocks too have edged higher after a subdued display.
Automobile, power and oil stocks are mostly subdued. Midcap and smallcap stocks, which had a weak outing on Tuesday, are moving higher on renewed buying support.
The Sensex, which had declined to 18,309.81 after a positive start, rebounded smartly to 18,428.07 subsequently, and is currently up 80 points or 0.44% at 18,409.32. The Nifty index of the National Stock Exchange is up 21.65 points or 0.4% at 5593.35.
ICICI Bank, Sun Pharmaceuticals, Cipla and Tata Power are up 1.6% - 1.8%. Jindal Steel & Power, Hindalco, ITC and Hindustan Unilever are trading higher by 1% - 1.2%.
Tata Consultancy Services, Mahindra & Mahindra, Tata Steel, GAIL India, Infosys, Larsen & Toubro, Sterlite Industries, Bajaj Auto, Wipro and HDFC Bank (the stock has hit a new high today) are also trading firm.
Asian Paints, up nearly 2%, is the top gainer in the Nifty index. Grasim Industries, Sesa Goa, Reliance Infrastructure, Bank of Baroda, Axis Bank and Ambuja Cements are up 1% - 1.4%.
Cairn India has lost 1.1% following a sharp drop in global crude oil prices. NTPC, BHEL, IDFC, HDFC, Hero Motocorp, Maruti Suzuki, HCL Technologies, Bharti Airtel and Lupin are also trading weak.
DB Realty is up nearly 6% at Rs 121 on strong buying at the counter on reports Bharti Group's realty arm is in talks with DB Realty 's hospitality arm to buy 49% stake in a special purpose vehicle for upto Rs 350 crore.
Anant Raj Industries is up nearly 5%. Prestige Estates, Godrej Properties, HDIL, Indiabulls Real Estate and Unitech are among the other notable gainers in the Realty index.
Mphasis is trading lower by about 3% on reports that Hewlett-Packard Co has took an $8.8 billion charge related to its acquisition of software firm Autonomy, citing "serious accounting improprieties," as it swung to a fourth-quarter loss.
Biocon is trading weak on reports the company has protested against the drug price regulator National Pharma Pricing Authority's insulin price fixation methodology, saying it discriminates against domestically produced insulin.
In the currency market, the rupee eased to 55.34 against the U.S. dollar in early trades this morning, losing 24 paise. On Tuesday, the partially convertible Indian rupee had ended at 55.10 against the greenback, losing 4 paise.