After struggling for over three hours, the market saw some brisk buying nearly an hour past noon today following a firm start in European markets. An upward revision in India's growth forecast by the World Bank did its bit to lift sentiment to some extent.
However, with stocks facing resistance at higher levels, the market has retreated again and is currently trading just marginally ahead.
Capital goods stocks are among the prominent gainers. Mirroring their surge, the BSE CG index has spurted more than 2% now. Stocks from FMCG, healthcare, information technology and banking sectors are also edging higher.
Metal and power stocks are trading mixed. Oil stocks are mostly trading flat. Consumer durables, realty and automobile stocks remain subdued. While midcap stocks are mostly seeing lackluster trades, several stocks from the smallcap space have moved higher on strong buying enquiries.
The Sensex, which rose to 16,944.11, is currently at 16,891, up 28.20 points from its previous closing mark. The Nifty index of the National Stock Exchange is up 5 points at 5120.90.
Larsen & Toubro, up 3.3% at Rs 1359, is the top gainer in the Sensex. BHEL has notched up a gain of 1.2% at Rs 222. Sun Pharmaceutical Industries and Hindustan Unilever are trading higher by around 2% at Rs 591 and Rs 441.50, respectively.
ICICI Bank is up with a gain of 1.7%. ONGC, Jindal Steel, Wipro, State Bank of India, Coal India, Infosys, Tata Consultancy Services, ITC and Bharti Airtel are trading higher by 0.5% - 1.2%.
Ambuja Cements, IDFC, Jaiprakash Associates, Punjab National Bank, HCL Technologies, Ranbaxy Laboratories and Siemens are up 1% - 2%.
Meanwhile, Maruti Suzuki (down 3.4%), Tata Motors (down 2%), Mahindra & Mahindra (down 2%) and Hero Motocorp (down 1.6%) continue to trade weak. Bajaj Auto is down with a loss of about 0.6%. Automobile stocks are down on selling pressure on reports that prices of diesel cars may be hiked by Rs 2.5 lakh.
Sterlite Industries, Tata Power, Bank of Baroda, Reliance Infrastructure, Axis Bank, Sesa Goa, Reliance Industries, DLF, Axis Bank, HDFC Bank and Dr Reddy's Laboratories are also trading weak.
Neyveli Lignite Corporation Ltd has informed BSE that pursuant to the Memorandum of Understanding entered into with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), the Cabinet Committee on Infrastructure, Government of India has accorded its approval for formation of Joint Venture Company with UPRVUNL with shareholding of 51% of the equity capital by NLC and 49% by UPRVUNL for selling up of a 1980 MW coal based Thermal Power Project in Ghatampur Tehsil, Kanpur Nagar District of Uttar Pradesh. The stock, which rose to Rs 82 earlier in the day, is currently trading at Rs 81.15, up nearly a percent.
Consolidated Construction Consortium Ltd shares are up 7% at Rs 14 following an announcement from the company that it has bagged an order from IL&FS Urban Infrastructure for design and construction of a Green Field Stadium at Karyavattom (Kerala) for the National Games to be held in Kerala, valued at Rs. 124.17 crore.