Thanks to sustained buying in several blue chip stocks from across various sectors, the market, which opened on a buoyant note on strong global cues this morning, remains high up in positive territory now.
Amid easing worries about the fiancial situation in Europe following the European Union deciding on financial package to support Spain's struggling banking system, Asian markets are trading notably higher today. Taking cues, investors are on a buying spree on the Indian bourses.
Expectations of a rate cut announcement from the central bank in the forthcoming monetary policy review too aid sentiment to a notable extent.
The Sensex is up 141.96 points or 0.8% at 16,860.83, around 33 points off the day's high of 16,893.81. The Nifty is up with a gain of 41.80 points or 0.82% at 5110.15, around 15 points off the day's high of 5124.45.
In the currency market, the rupee moved up to 55.10 against the dollar, gaining 32 paise. Besides the euro's gains against the greenback overseas, a firm start in the equity market and selling of dollars by exporters aided the rupee's surge. The rupee had ended at 55.42 against the dollar, on Friday.
Realty, metal, consumer durables, power, bank and automobile stocks are mostly trading higher. Information technology stocks, which were relatively subdued early on in the session, are trading firm now. Oil, capital goods and FMCG stocks are trading mixed, while healthcare stocks are slightly weak.
Besides several large cap stocks, scores of midcap and smallcap stocks too are up in positive territory with impressive gains. The BSE Midcap index has surged 1.15%, while the Smallcap barometer is up with a gain of 1.3%.
Sterlite Industries is up 4.3%. Bajaj Auto and Coal India are trading higher by 3% and 2.3%, respectively. ICICI Bank, Hindalco, GAIL India, Tata Steel, State Bank of India, Hindustan Unilever, Infosys, Tata Motors, HDFC and NTPC are up 1% - 2% now.
Power stocks are in demand on reports the government will allow power generation companies to raise tariffs by up to Re 1 per unit for power projects using imported coal to offset the effect of increase in fuel price due to additional taxes or changes in law by the governments of source countries.
Tata Power has notched up nearly 4%. Reliance Infrastructure, Adani Power, JSW Energy, Lanco Infratech and Suzlon Energy are up 3% - 4%. NHPC, ABB, Reliance Power, Siemens, Thermax, Torrent Power, NTPC and Power Grid Corporation are also trading notably higher.
Videocon Industries, Indraprastha Gas, IFCI, HDIL, Unitech, Lanco Infratech, JSW Energy, Jaiprakash Associates, Oberoi Realty, IDBI Bank, Indian Bank and REC are among the prominent gainers in BSE 'A' Group.
Nippo Batteries shares jumped more than 17% to Rs 515, extending its Friday’s 19% rally. The stock is up following the Japanese promoter Panasonic Corporation selling its entire stake in the company to the Indian promoter via block deal.