Sensex holds gains, stays above 18,000 mark; Automobile stocks sparkle

The Sensex, which sailed past the psychological 18,000 mark in a flash this morning, tracking cues from Asian markets where the mood is quite bullish at present thanks to reports the Chinese government has pledged his support to pull Europe out of its debt crisis, remains high up in positive territory thanks to sustained buying almost across the board.

Impressive results from some top notch companies, including Tata Motors, and expectations of a rate cut from the central bank following a significant drop in headline inflation are also contributing to the upbeat mood on the Indian bourses.

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At 18,068.67, a few points off a high of 18,089.99 it touched this morning, the Sensex is now up 220.10 points or 1.23% over its previous closing mark.

The Nifty index of the National Stock Exchange is up 78.15 points or 1.26% at 5484.20, slightly off the day's high of 5488.10.

Automobile stocks are on a roll. Mirroring hectic buying in that space, the BSE Auto index has gained over 3.5% now. Realty, capital goods, bank, metal, power and consumer durables stocks are mostly up with strong gains.

Stocks from information technology, healthcare and PSU sectors are also mostly trading higher. FMCG and oil stocks are somewhat subdued at present. Besides a number of large cap stocks, several stocks from midcap and smallcap sections too are up in positive territory with impressive gains.

Among Sensex stocks, only Reliance Industries (down 0.9%) and NTPC (down 0.4%) are trading in negative territory at present.

Tata Motors is up as much as 6.5% at Rs 285.60. On Tuesday, the company said it posted a net profit of Rs 173.67 crore for the quarter ended December 31, 2011 as compared to Rs 410.06 crore for the quarter ended December 31, 2010. Total Income increased from Rs 11285.30 crore for the quarter ended December 31, 2010 to Rs 13362.91 crore for the quarter ended December 31, 2011.

On consolidated basis, Tata Motors Group posted a net profit of Rs 3405.55 crore for the quarter ended December 31, 2011 as compared to Rs 2424.38 crore for the quarter ended December 31, 2010. Total Income increased from Rs 31451.44 crore for the quarter ended December 31, 2010 to Rs 45284.28 crore for the quarter ended December 31, 2011.

Maruti Suzuki is up 4.3% at Rs 1318.60 and Mahindra & Mahindra is up with a gain of 2.5% at Rs 735, while Bajaj Auto and Hero Motocorp are trading higher by 1.4% and 1% at Rs 1756 and Rs 2095 respectively.

Realty stock DLF has gained a little over 3%. Telecom major Bharti Airtel is up almost 3%. Capital goods heavyweights Larsen & Toubro and BHEL are trading higher by 3% and 1.7%, respectively.

Metal stocks Sterlite Industries, Jindal Steel, Hindalco and Coal India are up 1% - 2.8%. Tata Steel up with a gain of 0.8%. Tata Power, Cipla, Sun Pharmaceuticals, Infosys, Wipro, Tata Consultancy Services, ONGC and GAIL India are also trading notably higher.

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Axis Bank, Reliance Communications, Ranbaxy Laboratories, IDFC, Punjab National Bank, Siemens, Reliance Infrastructure, Ambuja Cements and Kotak Bank are up 1% - 2.75%.