Volatile Sensex trades higher; midcaps, smallcap outperform

Indian equity benchmarks extended gains amid somewhat volatility, rising 0.4% led by buying interest in banking and financials, oil & gas, technology, auto and metal stocks. However, power and FMCG stocks were slightly under pressure.

The 30-share BSE Sensex moved up 72 points to 17,464.14, supported by 26 components. Meanwhile, the 50-share NSE Nifty gained 20.15 points at 5,295.30. The Indian rupee too rebounded by 16 paise to 55.75 against the US dollar.

Siddharth Bhamre of Angel Broking continues to be positive on the market and suggests that one should not short at this point in time.

Country's largest lender ICICI Bank rallied 1% while its rivals State Bank of India and HDFC Bank were up 0.65% and 0.36%, respectively. Housing finance company HDFC went up 0.5%.

Engineering and construction major by sales Larsen & Toubro was up 1.3% and top telecom operator Bharti Airtel moved up 0.5%.

Technology majors TCS and Infosys were trading marginally higher ahead of their earnings for the first quarter ended June 2012.

Top commercial vehicle maker Tata Motors jumped 1.7% while shares of Hero Motocorp, M&M, Maruti and Bajaj Auto gained 0.5-1%.

Oil & gas producers Reliance Industries and ONGC were up 0.3% each.

However, power producers NTPC and Tata Power were down 0.5-1%. Cigarette major ITC declined 0.5%.

The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices rising over 0.6%. About three shares advanced for every share declining on the National Stock Exchange.