Millions of gays, lesbians and transsexuals have taken to the streets in Sao Paulo, Brazil to call for an end to homophobic violence and discrimination.

DJs blasted dance music from trucks which drove up and down the city's skyscraper-lined main avenue as people danced and celebrated in hot, sunny weather in the world's largest gay pride parade.

Organisers were hoping for a turnout of 3.5 million people but military police declined to estimate numbers.

Sao Paulo Gays, Lesbians, Bisexuals and Transgenders Parade Association chose the slogan "Homophobia kills! Defending the secular state" for the 12th parade since the annual event began in 1997 with 2,000 people.

Agenor de Souza, 36, said the massive parade sent out a very positive message of equality.

"It's very pretty to see this number of people, this joy, and all of this demonstrates that we are here to fight, that we are happy and that we really want equality among all people," he said, holding hands with his boyfriend.

On a visit last year to Brazil, the world's most populous Catholic country, Pope Benedict attracted less than 1 million when he spoke out against homosexuality and called for traditional family values to be reinforced.

Sao Paulo authorities and Brazilian oil firm Petrobras backed the event which has become a big money-spinner for the city and for tourism in Latin America's biggest country.

From the top of a colourful float drag queen Abigail Rosselini cheered the crowd with a message against homophobia.

"Save the gays, save the lesbians, save sexual diversity and a hoot for homophobia," he said.

The parade association is also backing plans by Sao Paulo's Commerce Federation, to certify retailers and service providers who respect diversity of race, ethnic origin, physical difference and sexual orientation.

Research has found homosexuals in Brazil were above-average earners and spent more on leisure, but 40 per cent of gay, lesbian, bisexual and transgender people suffer discrimination as consumers.

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