India equities opened the week on a firm note

IT, metal, banking and realty stocks notched huge gains.

The quarterly review meet of the central bank (RBI) and FOMC meet in US were the two major events that lifted the market sentiments.

Moreover, a firm trend on the Asian stock markets and some good results from India Inc also contributed to the buoyant mood.

Asian stocks posted gains as US economic indicators gave a hope that demand for commodities as well as Japanese-made goods will get better.

Mirroring strong buying in these stocks, the BSE Midcap index has surged 0.87% while the smallcap barometer has moved up by 0.35%.

The 30-share index, BSE Sensex, today (Jan 27), belled the day after gaining 128.72 points at 8,803.07, as against its previous closure in which it lost 139.49 points (1.58%).

At 10.04 a.m., Sensex was trading up 117.23 points at 8,791.58 after hitting a high of 8,816.82 and a low of 8,791.58.

Meanwhile the broad based Nifty stood at 2,728.95, up 50.40 points, after touching a high of 2,735.80 and a low of 2,685.25. (10.04 a.m.)

The overall market breadth was positive as 219 stocks posted gains, 49 recorded losses while 7 remained unchanged.

The major gainers in the 30-share index included State Bank Of India (3.48%), Reliance Energy (3.44%), Jaiprakash Associates (3.41%), Tata Consultancy Services (3.36%), Tata Steel (3.34%) and Bharti Airtel (3.11%).

On the other hand, Larsen & Toubro (4.03%), and Oil & Natural Gas Corporation (1.38%) were the biggest losers in the Sensex.

Mr. P. K. Agarwal, President–research, Bonanza Portfolio said that RBI meet outcome on Tuesday may impact this week’s trading.

The central bank (RBI) will come out with the third quarter review of monetary plan for 2008-09 today (January 27, 2009).

RBI Governor D Subbarao will meet the chief executives of major scheduled commercial banks at 1100 hrs and release the review.