After a buoyant start that resulted in the BSE benchmark Sensex vaulting more than 270 points to 17,772.10 at the stroke of the opening bell, the market has retreated and pared some gains now with buying momentum subsiding a bit.
Following a surprise 75-basis points cut in Cash Reserve Ratio - the Reserve Bank of India made an announcement to this effect after trading hours last Friday - and on expectations of some market friendly measures from the forthcoming Union Budget, the market opened on an upbeat note this morning.
However, with investors choosing to cut positions at higher levels due to a slightly weak trend in Asian markets and on caution ahead of release of the crucial industrial production data for January 2012, the market has given up some gains now.
At 17,625.44, nearly 150 points off the day's high, the Sensex is now up 122.20 points or 0.7% over its previous closing mark. The Nifty index of the National Stock Exchange is up 31.60 point sor 0.59% at 5365.15, nearly 60 points off an early high of 5421.90.
Bank, consumer durables, capital goods and metal stocks are mostly trading higher. Automobile and realty stocks started off on a firm note but have retreated to lower levels now. Oil, information technology and power stocks are finding good support, while FMCG and healthcare stocks are quite subdued.
Among the gainers in the Sensex, State Bank of India is up 3.35% at Rs 2296. ICICI Bank is up nearly 2% and Larsen & Toubro is trading higher by a little over 2%. Tata Steel, BHEL, Coal India, Tata Power, Sterlite Industries, Jindal Steel, Reliance Industries and GAIL India are up 1% - 1.5%.
IDFC, Punjab National Bank, Axis Bank, Kotak Bank, Reliance Infrastructure, Reliance Power, SAIL, Sesa Goa, Power Grid Corporation and Ranbaxy Laboratories are among the prominent gainers in the Nifty index.