Thanks to sustained buying at several blue chip counters, the market, which opened on a firm note on positive lead from Asian markets, continues to trade higher, carrying its early gains into the late morning session.
Healthcare, capital goods, metal, bank and FMCG stocks are trading higher with investors indulging in some bargain hunting after recent sharp losses. For now, the market appears to have shrugged off a downward revision in Indias' growth forecast by the International Monetary Fund.
The BSE benchmark Sensex is up 175 points or 0.93% at 18,884, while the Nifty index of the National Stock Exchange is up with a gain of 48 points or 0.9% at 5728.
In the currency market, the rupee moved up to 52.24 against the dollar in early trades, gaining 40 paise in the process. Besides a firm start in stock markets, the euro's surge against the dollar aided the rupee's rally.
On Monday, the partially convertible Indian currency had ended at 52.64, losing as much as 79 paise, against the greenback.
Tata Power, Larsen & Toubro and Sun Pharmaceutical Industries are up 2% - 2.2%. Jindal Steel, Dr Reddy's Laboratories, while Sterlite Industries, ICICI Bank, Cipla, Tata Steel, HDFC Bnak and Hindustan Unilever are up 1% - 2%.
Maruti Suzuki, Hero Motocorp, Tata Motors, State Bank of India, ITC, Coal India, Hindalco, Infosys, HDFC and Mahindra & Mahindra are also trading notably higher.
Bajaj Auto is trading 1.6% down. Bharti Airtel, Wipro, BHEL, NTPC and GAIL India are down with modest losses.
United Spirits, Gujarat Minerals, United Breweries, JSW Energy, Syndicate Bank, Biocon, Engineers India, Muthoot Finance, Glenmark Pharmaceuticals and Power Finance Corporation are up 3% - 6%.
Britannia Industries, which spurted to Rs 524.80 after a positive start, is currently off that high, but at Rs 516, still remains well placed in positive territory with an impressive gain of 4.8%. The stock is up amid speculation that the company is close to signing a deal to sell its 6-acre prime real estate land in Bangalore for approximately Rs 550 crore.
Idea Cellular is down 2.8% on profit taking. Glaxosmithkline Consumer Healthcare, Tata Global Beverages, Gujarat Fluorochemicals, Exide Industries, HDIL and Adani Enterprises are also trading notably lower.
Panacea Biotec, the Rs 700-crore drug and vaccine major, is betting big on hospitals. The New Delhi-based company is likely to tap private equity funding for expansion. The stock is up more than 2% at Rs 118.
Educomp Solutions is looking to raise an additional Rs 1,300 crore ($250 million) capital by issuance of international bonds and other long term securities. In a meeting held by the company yesterday, the board of directors of the Educomp Solutions have considered and approved this provision, subject to the approval of the shareholders. In a filing to the Bombay Stock Exchange, the company said that it would also look at international bonds, with a sub-limit thereof for raising money through equity linked instruments upto Rs 390 crore ($75 million). The stock is up 0.8% at Rs 174 now.
On Monday, the International Monetary Fund cut its 2012 GDP growth forecast for India sharply, to 4.9% from 6.1% estimated in July, and 6.8% in April.
In its update to the World Economic Outlook, the IMF has cited “continued investment slowdown” and further deterioration in the global economy as the main drivers behind the downgrade.
The outlook for India could worsen, unless European and US policymakers deal proactively with their daunting economic challenges, the IMF warned.