Sensex, Nifty gain 1% on global cues; banks, metals up

Asian markets extended their gains on Monday, supported by expectations the Federal Reserve and the European Central Bank will deliver new measures to underpin their fragile economies, but the euro fell as caution kept a firm cap. Hang Seng rallied 1.55% while Nikkei, Straits Times, Kospi and Taiwan Weighted went up 0.7%-0.9%.

Back home, ICICI Bank gained another 2% after better than expected numbers on Friday.

Axis Bank, SAIL, Sesa Goa, Tata Steel, Sterlite Industries, Tata Motors, TCS, Infosys, JP Associates, L&T, BHEL, Reliance Industries, L&T, IDFC, Cipla and Ranbaxy gained 1-2.5%.

However, Maruti fell 2% as traders worried about its Manesar plant. Even its first quarter numbers disappointed the street. Company said, "Adverse currency movement hit Q1 profit. Demand was lower for petrol cars in the quarter."

Ambuja Cements, Power Grid, Bank of Baroda and Bajaj Auto gained.

The CNX Midcap Index moved up 48 points to 7,072. About two shares advanced for every share declining on the National Stock Exchange.

In the second line shares, IRB Infrastructure gained 4.5% after Q1 results. REC was up 2% and IGL went up over 1% post Q1 numbers. United Spirits was up 1% on better than expected margin in Q1.

Thomas Cook was up over 3% post strong consolidated numbers in June quarter.

However, Deccan Chronicle and Subex went down nearly 9%. Pantaloon Retail was down 1%.

Crompton Greaves was up 0.8% as the company acquired Smart Grid Automation Company ZIV Group for Euro 150 million.

Bounce back after beaten down on Friday: Tulip Telecom shot up 5%; Era Infra was 3% and Pipavav Defence gained 3%. 

HCC, SKS Microfinance and GVK Power were up 1-3%.

(With inputs from Reuters)