After a flat start, indices have picked up strength and are trading with decent gains. Though banking stocks have come under pressure, metal stocks have taken over the lead. Asian markets are mixed in morning trades as US indices continued the up trend yesterday as well.

Sensex opened at 12415 and rallied to a high of 12437. The index is trading higher by 36 points at 12417 at 11.10 AM.

Nifty opened at 3572 and touched a high of 3597. The index is now trading higher by 11 points at 3582.

Metal stocks are leading the market in early trades on hopes of firm metal prices in the medium term. SAIL is the best performer among index stocks, with gains of 3.5 per cent. Tata Steel has added nearly 2.5 per cent.

Among other metal stocks, Hindalco has gained almost 2 per cent.

Jet Airways has gained more than 2 per cent on speculation about a possible cut in aviation fuel prices.

Cement stocks are rallying today as well on hopes of rising prices. Grasim and Gujarat Ambuja have added more than 2 per cent each while ACC is trading nearly 2 per cent higher.

HDFC is sustaining the up trend despite the correction in other financial stocks and has added more than 1.5 per cent.

Zee Tele is the other major gainer, trading nearly 1.5 per cent higher.

Banking stocks are seeing some profit booking after the spectacular rally over the last 3 sessions. OBC is the worst performer among index stocks, trading nearly 2 per cent lower.

PNB and ICICI Bank have shed close to 1.5 per cent each. HDFC Bank is down almost a per cent and SBI has lost more than 0.5 per cent.

Nalco has lost nearly 2 per cent after rallying yesterday.

Hero Honda, Gail India, Bharti and Infosys are the other major losers.

Mid-caps and small caps are continuing the rally and doing much better than large caps. There is considerable interest in sectors like metal and sugar and many stocks have notched up significant gains.

The NSE mid-cap index is now trading with gains of over 0.75 per cent. BSE mid-cap index has added 1.2 per cent and the small-cap index has gained nearly 1.25 per cent. Market breadth on the NSE is very positive with more than 3 stocks advancing for every declining stock.

Rama Newsprint and Visa Steel are locked in the 20 per cent upper circuit in early trades.

Sugar stocks are continuing the up trend today as well. Dharani Sugar has added another 10 per cent while Ponni Sugar is trading 9 per cent higher. Balrampur Chini, Bajaj Hindustan, Triveni and Dhampur are also trading with good gains.

Prime Securities, Rico Auto, Shanthi Gear, Rajvir, National Steel and Mukand Limited are among the major mid-cap gainers.

Assam Company, Glenmark Pharma, Eicher Motors, Softpro, Lakshmi Precision Screws and Cinevistas are the major mid-cap losers.