Markets continue trading near all-time highs; Nifty comfortably above 9,800

LATEST MARKET NEWS - Frontline indices extended gains to trade near all time highs in the noon trade on positive cues from the global markets.Gains were however capped as investors remianed cautious as they waited for Federal Reserve Chair Janet Yellen;s testimony for clues on when the central bank would tighten the US monetary policy.

Sensex rose as much as 131 points to hit the record high of 31,847, surpassing its previous milestone of 31768.39 hit yesterday while Nifty gained as much as 47 points to hit 9,818, surpassing the last high of 9,772 hit yesterday.

At 12:08 pm, the S&P BSE Sensex was trading at 31,844, up 128 points while the broader Nifty50 was ruling at 9,818 up 47 points

In the broader market, the S&P BSE Midcap was little changed while S&P BSE Smallcap index rose 0.4%.

"Low volumes were instrumental in yesterday’s rise. However, the vertical rise is instructive, and suggestive towards potential for similar such sharp moves. Meanwhile pull back below 9,720 sharply reduce the upside prospects," said Geojit Financial Services in a note.

Buzzing Stocks

Infosys, TCS, Tata Motors, M&M and HUL contributed the most on BSE Sensex while Cipla, Bharti Airtel, ONGC, ITC and Dr Reddy's shed the most on the index.

State Bank of India gained 1% after said its central board approved dilution of its stake in its life insurance arm through an initial public offer for which it has already secured the sectoral regulatory approval.