(RTTNews) - Monday, the Indian market is trading firm, although it has pared some of its gains in early trading. Value buying and short-covering due to the attractive valuations of companies and the expectation that the RBI will pursue an easy monetary policy have generated buying interest in index heavyweights, while second-line stocks are subdued due to a gloomy outlook for the world economy.

The BSE Sensex opened at 10,160 and rose to an intra-day high of 10,307 in early trading. However, since then the index has pared some of its gains, and is currently trading at 10,219, up 244 points or 2.44%. The small-cap and the mid-cap indexes are up marginally, while the S&P CNX Nifty is trading at 3,137, up 2.04%.

IT, technology, metal, FMCG and banking stocks are leading the rally, while consumer durable and realty stocks are coming under selling pressure. On the BSE, the market breadth is slightly negative due to a lack of interest in second-line stocks. Totally, only 707 stocks are gaining compared to 818 stocks that are declining.

Wipro (up 8.33%), Satyam Computers (up 6.11%), Reliance Communication (up 5.41%), TCS (up 5.25%), ICICI Bank (up 5.05%), Sterlite Industries (up 5.05%), ACC (up 4.49%), HDFC Bank (up 4.41%), ITC (up 4.23%), Reliance Infrastructure (up 4.11%), HDFC (up 3.63%), ONGC (up 3.62%), Jaiprakash Associates (up 3.60%), Bharti Airtel (up 3.58%) and Infosys (up 3.22%) are some of the prominent gainers.

Twenty-Seven out of 30 Sensex stocks are trading in positive territory, However, Grasim Industries (down 5.30%), Mahindra & Mahindra (down 1.59%) and State Bank of India (down 0.28%) are trading in the red.

Infosys is up 2.95% on reports that the company has bagged an order from the Union Bank of California, US, for its core banking solution Finacle, beating another IT giant Tata Consultancy Services. NMDC is down 0.34% despite the company raising the long-term contract prices for its domestic iron ore by up to 46%.

Mount Everest Mineral Water is up 4.98% at Rs.84.25 after TREE Line Asia Master Fund (Singapore) has picked up close to 2.5 million shares, representing a nearly 8% stake for Rs.84.90 a share on October 15. Godawari Power & Ispat is gaining 5.97% after the company proposed to buyback its equity shares. Apollo Hospitals is down 3.53% after the company proposed to consider sub-division (split) of equity shares of the company.

Tata Motors is up 2.38% at Rs.249.20 even as reports said that the company has received a lukewarm response to its rights issue due to a slump in the stock price below the rights issue price. Reliance Power is down 2.55% on reports that the company has tied up a $2-billion financial back-age for the Sasan power project from the domestic debt market.

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