Markets are holding on to early gains as banking stocks have rallied further and most other frontline stocks remain firm. Other Asian markets remain firm but Europe has opened lower.

Sensex is trading higher by 146 points at 13854 at 01.10 PM.

Nifty is now trading higher by 27 points at 3968. Weakness in ONGC is holding the Nifty back.

Banking stocks continue to lead the rally. ICICI Bank has seen a nice up move and is the best performer with gains of nearly 3 per cent. HDFC Bank has gained close to 2.5 per cent and PNB is trading well over 2 per cent higher. HDFC has gained close to 2 per cent and SBI is holding on to gains of over a per cent.

BPCL is holding on to gains of over 2 per cent while HPCL is trading nearly 1.5 per cent higher. Among other oil and gas stocks, Gail has added nearly 3 per cent while Reliance Industries continues to trade more than a per cent higher.

Satyam has gained further and is up more than 2.5 per cent while Infosys continues to trade more than a per cent higher.

Tata Motors is holding on to gains of over 2 per cent.

Reliance Communications has gained nearly 2 per cent while MTNL has added 2.5 per cent.

ONGC has come under pressure after a subdued opening and has lost more than 0.5 per cent.

Tata Power has slipped in early afternoon trades and is the worst performer with losses of well over 0.5 per cent.

Among tech stocks, TCS and Wipro are trading with modest losses.

Among other losers, BHEL and SAIL are down over 0.5 per cent each and Nalco has lost close to 0.5 per cent.

Mid-caps and small caps are holding on to early gains. The NSE mid-cap index is now trading with gains of 0.9 per cent. BSE mid-cap index is trading with gains of 0.85 per cent and the BSE small-cap index is up 0.55 per cent. Market breadth on the NSE remains positive in early trades with nearly 2 stocks advancing for every declining stock.

TV-18, which got re-listed today after the restructuring, is now trading at Rs596.

Compulink Systems remains locked in the 20 per cent upper circuit.

Agro-Dutch, Goldstone Tele, Automotive Stampings, Godavari Fertilisers and Saregama are all locked in 10 per cent upper circuits.

Calsoft, Nilkamal Plastics, JHS Svengaard and Bluestar are among the major mid-cap gainers.

Simbhaoli Sugar, Teledata, RPG Cables, Paradyne Info, Genus Overseas and HB Stock are the major mid-cap losers.