Equity markets continue to trade higher; Auto, Banking counters lead

The local equity markets continue to trade in green with notable gains in late morning session on the back of constructive global support and easing domestic economic stability as inflation has declined further.  Global markets are supportive as US Index futures were trading higher and all other Asian markets too were trading higher. Back home, in the BSE sectoral space barring BSE CG down by  0.58% all other indices were trading  in green , Auto was up by 1.24%,  Bankex up by 1.10 %, IT up by 0.80%, Healthcare up 0.73% and Power  up  0.69%. The broader markets are also trading higher the BSE Mid cap and Small cap indices were up by 0.45% and 0.51%, respectively. The markets breadth on BSE is in the favour of advances, outperforming declines in the ratio of 1511:997, while, 97 shares remained unchanged.

The BSE Sensex surged 118.21 or 0.64% at 18,607.97. The index has touched a high of 18,736.97 and a low of 18,582.30 respectively.

The BSE Mid cap and Small cap indices were up by 0.45% and 0.51%, respectively.

Bajaj Finserv continued its up move on the tie up with Warren Buffet's Berkshire Hathway. The stock was trading 4.28% higher on the BSE.

Power Finance Corporation shares are up nearly 3.17% on the buzz that the company may raise around Rs 4,500 crore in external debt in fiscal year 2011-12. The company is reportedly seeking permission from Reserve Bank of India to raise more funds from advanced economies, taking advantage of low interest rates.

AXIS Bank surged more than one percent as ICICI Prudential Asset Management's Deputy Managing Director Nilesh Shah is joining Axis Bank and will be overseeing the lender's initiatives in the investment banking space. Shah, who is well-known in the mutual fund industry, will be joining as President, Strategic Initiatives, Corporate Banking at Axis Bank,

All the sectoral indices on the BSE with an exception of CG were trading  in green, Auto up by 1.24%, Bankex up by 1.10%, IT up by 0.80%, Healthcare up 0.73% and Power  up  0.69% were the major gainers on the index.

Private sector bank like, ICICI bank, YES bank, Indusind  Bank , Kotak Mahindra Bank, shares are  trading higher as the Cabinet gave its nod to the Banking Regulation (Amendment) Bill, which proposes to increase the voting rights of foreign investors in private sector banks. This Bill will looks for to coordinate the voting rights of foreign shareholders in banks in proportion to their equity holding - will make it easier for banks to raise capital. It will be tabled in the current session of Parliament. At present, there is a 10% cap on voting rights of foreign entities in private banks, regardless of their shareholding, newspaper report suggests.

The top gainers on the Sensex were Hero Honda up by 2.79%, Tata Power up by 2.71%, HDFC up by 2.14%, M&M up by 2.05% and Bajaj Auto was up by 1.95%.

L&T down by 1.20%, JP Associates down 0.87%, Hindalco Industries down 0.83%, Bharti Airtel down by 0.67% and ONGC down by 0.41% were the only losers on the index.

The S&P CNX Nifty advanced 32.65 points or 0.59% at 5,568.85. The index has touched a high of 5,608.20 and a low of 5,561.60 respectively.

The top gainers of the Nifty were Sun Pharma  up by 3.19%, Tata Power 2.90%, Reliance Power up by 2.77%, Hero Honda up by 2.50% and  M&M up 2.25% .

The top losers of the index were L&T down by 1.51%, JP associates down 1.11%, Sesa Goa down by 0.93%, Ranbaxy down by 0.89% and Hindalco down by 0.76%.

All the Asian equity indices were trading in the green; Shanghai Composite surged 0.65%, Hang Seng climbed 1.19%, Jakarta Composite advanced 1.06%, KLSE Composite moved  up by 0.92%, Nikkei 225 soared  by 1.02%, Straits Times gained 1.39%, Seoul Composite added 1.73% and Taiwan Weighted rose 0.53%.

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