MUMBAI: Indian equities gained momentum after a gap-up opening tracking positive Asian markets which moved higher ahead of US stimulus package.
Investors lapped up frontline stocks in oil&gas and banking space.
Heavy buying emerged in realty midcap companies. Analysts say the spike in these counters was on account of speculative buying. BSE Realty Index surged 6.03 per cent. Orbit Corporation (45.88%), Ansal Infrastructure (25.53%), Parsvnath Developers (22.12%) and MahindraLife (11.70%) were the top gainers in realty space.
“The Dow closed positive and other Asian markets are up as well. Yesterday, the US closed on a positive note on the back of expectations of the Obama bailout package next Monday. Also, Moody’s has said that the US housing market will bottom out in Q4 this year. We maintain our view that the situation remains serious and any rise should be used as an opportunity to book profits in the market. For the day, we are positive on our markets though selling at higher levels cannot be ruled out,” said Religare report.
At 10:30 am, Bombay Stock Exchange’s Sensex was at 9232.97, up 142.09 points or 1.56 per cent. The index touched a high of 9242.53 and low of 9158.59.
National Stock Exchange’s Nifty was at 2825.30, up 45.25 points or 1.63 per cent. The broader index hit an intra-day high of 2831.20 and low of 2778.65.
“Indices may see a gap up opening, however players may exit long positions in case of any move towards 2850~2875. Intraday support continues to remain around 2740 levels. Strict stop losses are absolute must for traders. All in all, expect another ranged session with stock specific actions. Lack of volumes may continue to remain a major concern,” said Reliance Money report.
BSE Midcap Index was up 1.02 per cent and BSE Smallcap Index gained 0.53 per cent.
BSE Oil&Gas Index was up 1.89 per cent, BSE Bankex gained 1.80 per cent, BSE Power Index moved 1.59 per cent higher.
Tata Motors (3.69%), Ranbaxy Laboratories (3.59%), Jaiprakash Associates (3%), TCS (2.64%), RELiance INFRAstructure (2.60%) and Reliance (2.32%) were the top Sensex gainers.
Sterlite Industries (-1.67%) was the only loser.
Market breadth was positive on the BSE with 961 advances and 528 declines.
