Markets edge higher led by FMCG, Banks

Key benchmark indices ended the day on a positive note with the BSE Sensex having ended 76 points higher at 17,539 and the Nifty closed up 25 points at 5,327.

During the day, the BSE benchmark index touched the day's high at 17,563 and the day's low at 17,424.

The broader markets continued to outperform with the midcap and the small cap indices having advanced up 1-2 per cent each, as compared to the Sensex which added 0.4 per cent.

The Asian markets closed mixed. Japan's Nikkei share edged lower on Thursday, with traders saying they believed a one-month rally that had taken the benchmark to a 2-month high and close to resistance at its 75-day moving average was running out of steam. Shanghai Composite lost 1 per cent and Hang Seng gained 0.5 per cent.

European markets opened higher as the European Central Bank is widely expected to cut borrowing costs to a record low on Thursday to support a deteriorating euro zone economy and complement measures agreed by government leaders last week to tackle the bloc's debt crisis. DAX and FTSE gained 0.4 per cent and 0.2 per cent respectively while CAC remained flat with a positive bias.

Back home, among the sectoral indices, FMCG, Bankex, Capital Goods and Power indices gained 1 per cent each.  Realty and Metal indices ended flat with a negative bias.

Retail stocks rallied after a business daily reported the government may allow foreign investors to own majority stakes in domestic supermarkets and department stores after the Presidential elections on July 19. Some of the major gainers were Koutons Retail, up 17 per cent, along with Provogue, Shoppers Stop and Trent up 7-10 per cent.

The top gainers among the Sensex stocks were Cipla, ICICI Bank, Tata Motors, ITC and Maruti Suzuki, up 2-3 per cent each.

Among the losers were ONGC down over 2 per cent.  Bajaj Auto, Coal India, Sterlite Industries and Bharti Airtel were down 1-2 per cent each.

Shares of Bajaj Group companies such as Bajaj Auto, Bajaj Finserv, Bajaj Holdings and Investment and Bajaj Finance traded lower on turning ex-dividend on Thursday.

The register of members & share transfer books of Bajaj Auto and Bajaj Holdings and Investment will remain closed from July 07, 2012 to July 18, 2012, and of Bajaj Finserv and Bajaj Finance from July 07, 2012 to July 17, 2012 (both days inclusive) for the purpose of payment of dividend and AGM, according to information filed by these companies to the stock exchanges.

Among individual stocks, Alstom Projects India (Alstom) moved higher by 5 per cent to Rs 418 after the company said that it has received an order worth of Rs 314 crore from the state-owned company Bharat Heavy Electricals Limited (BHEL). As per the contract, Alstom will work with BHEL in designing the boilers and supply pressure parts of the 660 MW supercritical boilers along with pulverisers and airpreheater components.

BSE market breadth was positive. Out of 3,012 shares traded, 1,946 shares advanced while 957 shares declined.