Nifty hovers around 8850; Midcap, Smallcap outperform

10:20am Gold Update

Gold hovered around the key USD 1,200-an-ounce level today, its lowest in seven weeks, as support for the safe-haven metal eased after a deal was struck over Greece's debt, while the absence of major consumer China also took a toll.

Spot gold was little changed at USD 1,202.10 an ounce by 0225 GMT, after dropping to USD 1,197.95 in the previous session as safe-haven bids receded. The metal recorded its fourth straight weekly decline on Friday.

Eurozone finance ministers reached an agreement to extend heavily indebted Greece's financial rescue by four months, officials on both sides said.

The deal removes the immediate risk of Greece running out of money next month and possibly being forced out of the single currency area, reports Reuters.

10:00am Market Check

The market remained firm with the Nifty hovering around 8850. Private banks, FMCG, technology, metals and healthcare stocks while heavyweights like HDFC, Reliance Industries were under pressure.

The Sensex rose 71.45 points to 29302.86 and the Nifty advanced 17.75 points to 8851.35. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.4-0.6 percent.

Nearly two shares advanced for every share declining on the Bombay Stock Exchange.

Hindalco Industries topped the buying list, up 1.7 percent on getting Gare Palma IV/4 coal block at Rs 3,001 per tonne in coal auction. Sesa Sterlite was up over a percent as its subsidiary BALCO won Gare Palma IV/1 coal block at Rs 1,585 per tonne and the company also proposed its name change to Vedanta.

Infosys, ICICI Bank, L&T, ITC, TCS, HDFC Bank, HUL, Wipro and Cipla gained 0.3-1 percent. GAIL, Bajaj Auto and Tata Steel fell more than 1 percent followed by HDFC and Reliance Industries with 0.4 percent loss.