Markets have rebounded smartly on the back of strong global cues and some cool off in crude oil prices. It has broken five days losing streak and recovered majority of losses. Rally has been led by infrastructure, rate sensitive, oil and technology stocks. However, metal stocks remained under selling pressure. Midcap and small cap stocks were also on buyers radar. Sensex closed above 13000 and Nifty above 3900 levels.

The Sensex surged 574.55 points to hit an intraday high of 13,150.35 as against its previous close of 12,575.80. It closed at 13,111.85, up 536.05 points or 4.26%. Nifty Fifty Index went up 152.05 points to touch a high of 3968.75 before closing the day at 3947.20, down 3.42% or 130.5 points.

Reliance Industries, ONGC, DLF, SBI, L&T, TCS, HDFC, ICICI Bank and Infosys Tech were top contributors in the gain of both indices.

Most of the action seen in stock futures space with a long bias. Nifty July Futures ended with a discount of 15 points. More than 30% OI build up was seen in stocks like Colgate, LIC Housing, Mphasis and Polaris. Large cap IT stocks saw short covering. Fresh long has seen in Infrastructure stocks like Punj Lloyd, Nagarjuna Construction and JP Associates. Hugh unwinding was seen in Nifty Call Options.

BSE Bankex was star of the day, shot up by 327.36 points or 6.06% to settle at 5,727.60. Axis Bank, Union Bank, SBI, Bank of India, ICICI Bank, HDFC Bank and Kotak Mahindra have gained 5-9%.

Capital goods stocks like Siemens, Punj Lloyd, Crompton Greaves, L&T, Astra Microwave, Areva T&D and BHEL were up 5-9%. Index rose by 601.48 points or 5.92% at 10,762.01.

Realty stocks also bounced back sharply, index went up 208.90 points or 4.95% at 4,428.02. DLF, Ansal Properties, Parsvnath, HDIL, Unitech, Peninsula Land and Omaxe surged 3-8.4%.

Amongst frontliners, HDFC shot up by 9.78%, Maruti Suzuki 9.46%, Jaiprakash Associates 9.19%, BPCL 9.27%, Siemens 8.81%, DLF 8.44% and SBI 7.75% while Sterlite Ind lost 5.88%, SAIL -5.51%, NALCO -4.43%, Ranbaxy Labs -3.87%, Cairn India -2.85% and Tata Steel -2.92%.

Power stocks completely charged, like Lanco Infratech, Reliance Infra, Tata Power, Power Grid Corp, GMR Infra, Suzlon Energy and Reliance Power. Index was up 4.2% to settle at 2,302.77.

Auto Index advanced 141.29 points or 4.16% to close at 3,535.78 due to buying in Maruti Suzuki, Exide Industrie, Bharat Forge, M&M, Tata Motors and Hero Honda, which gained 3-9.5%.

Oil stocks like BPCL, GAIL, IOC, HPCL, ONGC, RNRL and Reliance Ind also shot up by 3.6-9%. Index rose 263.69 points or 3.07% at 8,852.08.

IT Index went up by 108.22 points or 3.03% at 3,675.20 as buying was seen in TCS, I-Flex Solution, Satyam, Mphasis, Wipro, Infosys and Tech Mahindra, which rose 2-7%.

Amongst telecom stocks, Reliance Comm, Tata Comm, Bharti Airtel, MTNL, TataTeleservices and Idea Cellular surged.

FMCG Index was up 2.34% at 1,941.94 due to gain in Marico, ITC, Tata Tea, HUL and Nestle.

BSE Midcap gained 67.06 points or 1.32% at 5,155.34 and Small Cap Index 62.67 points or 0.99% at 6,387.12. Amongst midcap stocks, BGR Energy, IVRCL Infras, UB Holdings, Essar Shipping, Balaji Telefilm, Gateway Distri and Bombay Rayon went up by 8-20%.

In the small cap space, Polaris, Eimco Elecon, Unichem Labs, Hitachi Home, Maha Scooters and Timken rose by 11-15.5%.

Healthcare Index ended flat at 3,976.28. Buying was seen in Glenmark, GlaxoSmithKline, Cadila Health, Pfizer, Wyeth, Divis Lab, Dr Reddys Labs while selling in Biocon, Ranbaxy Labs, Orchid Chemical and Dishman Pharma.

However, Metal Index lost 238.62 points or 2% at 11,697.30 on fears that there is likely cap on steel-price hike, which hit sentiment. Selling seen in SAIL, Sterlite Ind, NALCO, NMDC, Jindal Steel and Tata Steel, which plunged 3-6%.

Market breadth was positive; about 1643 shares have advanced while 1268 shares declined. Nearly 239 shares remained unchanged.

Most active counters were Ranbaxy Labs, Reliance Ind, L&T, Reliance Infra, ICICI Bank and Reliance Petroleum.

BGR Energy was up 20% for second straight session as it had received Rs 4900 crore worth of order yesterday.

Polaris went up 16% on strong Q1 performance and announcement of Real Estate foray.

Total turnover traded by markets stood at Rs 62,852.9 crore. This includes Rs 11,697.25 crore from NSE Cash segment, Rs 46,300.96 crore from NSE F&O and balance Rs 4,854.69 crore from BSE Cash segment.

Asian markets were trading higher. Hang Seng was up 2.47%, Nikkei 0.75%, Straits Times 1.5%, Kospi 1.6% and Taiwan Weighted 3.7%.