The markets have surged to the day's high. The Sensex touched a high of 16,370 and is now up 150 points at 16,364.

The Nifty is at 4,867 - up 58 points.

DLF has gained 4% at Rs 407. Sterlite and Jaiprakash Associates have added 3% each to Rs 742 and Rs 238, respectively.

Tata Motors and Hero Honda have advancd 2% each to Rs 573 and Rs 1,591, respectively.

Larsen & Toubro, SBI, Reliance Communications, Sun Pharma, M&M, Reliance Infrastructure and Hindalco have moved up over 1% each.

The market breadth is extremely positive. Out of 2,272 shares traded 1,640 have advanced while 565 have declined.