Mumbai: Markets gained momentum after inflation slipped below to 2.43% during the week ended February 28 from 3.03% a week earlier. It is the lowest figure since June 2002.
Investor sentiment was also boosted as industrial production for the month of January number was reported at -0.5% from previous -.06% in December 2008.
Banking stocks gained on hopes for lower interest rates that may boost lending growth. At 1:30pm, the 30-share BSE Sensex was trading higher by 237.09 points at 8,397.49 and 50-share NSE Nifty is up by 57.30 points at 2,630.45.
Major gainers from the BSE Sensex pack are ICICI Bank zoomed up 8.08% to Rs284.20 along with Tata Motors surged 5.05% to Rs143.60, Sterlite Industries by 4.44% to Rs255.30, Maruti Suzuki by 4.21% to Rs678.10 and Hindustan Uniliver by 4.16% to Rs225.50.
The losers from the BSE pack are Bharti Airtel tumbled 4.14% to Rs563.40 along with Tata Power by 1.88% to Rs611.10, NTPC by 0.85% to Rs175.00, DLF Ltd by 0.76% to Rs137.65, and Ranbaxy Labs by 0.56% to Rs134.25.
Tata Motors surged 5.05% to Rs143.60 after the British government announced a £27 million (Rs192 crore) grant to Jaguar Land Rover to help it build a new, greener vehicle.