Markets have gained further, led by financial and banking stocks. Asian markets continue to trade with strong gains while Europe has also opened firm.

Sensex is trading higher by 196 points at 12400 at 01.10 PM.

Nifty is now trading higher by 55 points at 3570.

Banking and financial stocks have rallied further after the firm opening. OBC is the best performer among index stocks, trading nearly 5.5 per cent higher.

HDFC Bank has gained close to 4.5 per cent while PNB has rallied over 3 per cent. SBI is up 2.5 per cent and ICICI Bank has gained nearly 2 per cent.

Among tech stocks, both Infosys and Wipro are trading with gains of over 2.5 per cent each. TCS has added close to 2 per cent while Satyam is holding on to gains of over 1.5 per cent.

Tata Steel is trading nearly 2.5 per cent higher on rumours about acquiring Corus.

Reliance Communications is holding on to gains of over 2.5 per cent.

HPCL continues to trade more than 2.5 per cent higher. ONGC has added close to 1.5 per cent while Reliance Industries is up nearly a per cent.

L&T is also holding on to gains of close to 2.5 per cent

There are still no losers among Nifty stocks.

Mid-caps and small caps have also gained further after the strong opening. The NSE mid-cap index is now trading with gains of over 1.8 per cent. BSE mid-cap index has added close to 2 per cent and the small-cap index has gained over 1.85 per cent. Market breadth on the NSE remains extremely positive with nearly 10 stocks advancing for every declining stock.

Petronet LNG is locked in the 20 per cent upper circuit on reports of a stake sale to a Qatar-based gas company.

Khandwala Securities, Elgi Tyre, Pudumjee Pulp, Walchandnagar Industries, Premier Limited, Eurotex, JK Industries, Moser Baer and Apollo Tyres are among the major mid-cap gainers.

Rama Newsprint remains weak with losses of 5 per cent.

Yokogawa, Mirc Electronics, Ashapura Minechem, Cinevistas, Kinetic Motors and GKW are the major mid-cap losers.