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Markets ended higher for second straight session led by the rally in select banks and index heavyweights.
The Sensex ended higher by 245 points at 27,372 mark and the Nifty gained 66 points at 8,225.
Markets continue to stage a strong comeback erasing most of its losses posted in its five day rout seen at the start of the week. Broad based buying pulled the Nifty above its 50-day moving average on the back of Fed optimism.
Even though the FIIs have been sellers during the last few sessions, DIIs swiftly turned buyers picking up the opportunity to buy cheap. Benchmark indices retained most of its early gains in noon trades with ICICI Bank, Infosys, RIL and TCS leading the rally.
The quartet contributed to 175 point gain seen on the Sensex. At 1420 hrs, the Sensex was up 300 points or 1.1% at 27,425 and the Nifty gained 87 points or a% at 8,246. The gains in the broader markets were in line with the benchmark index with the mid and smallcap indices up a percent each.
Sectors & Stocks
FMCG and Realty indices down nearly 0.5% each were the only sectoral indices in red.
The ones leading in noon trades were Metal, Auto, Capital Goods, IT, Metal, Oil & Gas and Power scrips withthe respective sectoral indices up 1-2%. IT stocks gained on firm first quarter results by Accenture.
Infosys, TCS and Wipro have gained upto 3%. Auto stocks have gained as the government prepares to get the Goods and Services Tax, Bill passed by the parliament.
After receiving cabinet approval, the Goods and Services Tax (GST) Constitutional Amendment Bill is likely to be introduced in the Lok Sabha on Monday.
Hero MotoCorp and M%M were up nearly a% each while Tata Motors surrendered most of its early gains to trade with a 0.4% gain. Metal stocks are trading firm.
Sesa Sterlite, Hindalco gained 2% each while Tata Steel added 1.5%. Oil and gas shares were mixed. Reliance has gained 2.5% and ONGC was up by 1.6% while GAIL was marginally in green.
Earlier, the Supreme Court had given green signal to GAIL to take part in the tendering process for laying Ennore-Tuticorin pipeline.
Bank shares have come off early morning highs and were trading mixed. ICICI Bank gained close to 3% and was the top gainer among Sensex-30.
According to media reports, the bank is in the process of sshrinking its international balance sheet by selling its subsidiary in Russia, repatriating capital from its UK (United Kingdom) and Canada arms.
HDFC Bank and SBI were in red on profit taking. Among pharma shares, Sun Pharma and Cipla were under pressure while Dr Reddys Lab gained close to 2%.
The company has closed the acquisition of Habitrol Brand, an over-the-counter nicotine patch, from Novartis. Some of the other names in red were FMCG heavyweights ITC and HUL down upto 1%.
Global Markets
Asian shares enjoyed their best day in 15 months on Friday, after Wall Street boasted its biggest two-day advance since late 2011 amid relief the Federal Reserve was in no rush to withdraw stimulus from the U.S. economy.
MSCI's broadest index of Asia-Pacific shares outside Japan put on 1.5%, the steepest daily rise since September last year.
Shares in Shanghai hit their highest in four years before running into profit taking. Japan's Nikkei climbed 2%.
