Nifty, Sensex open firm, BEML, Max lead midcap gainers

Moneycontrol Bureau

Equity benchmarks were firm in early trade, as traders are betting that the positive momentum will sustain through this month.

The Sensex was up 80 points at 19,428 and the Nifty was up 20 points at 5910.

Investors continued to show a marked preference for second line shares. The general feeling is that large cap shares are fairly valued at these levels and unlikely to rise much hereon. BEML was the top gainer among midcap shares, up 5% at Rs 308. Max India was the other major gainer, up 4.6 percent at Rs 257.50. Videocon Industries, Sobha Developers and Tulip Telecom were up between 3-4 percent.

Dealers said sustained buying by foreign funds was the main driver of the rally. Also, they said the market was hopeful of FDI in retail being approved by the Parliament later today. Pantaloon Retail shares were up 1 percent in early trade, after a subdued close Tuesday.

There was good demand for metal, capital goods, realty and auto shares. Laggards included shares from the IT and FMCG sectors.