Markets pare some gains on back of profit booking in auto stocks. The Nifty has advanced 33 points to 5993 after climbing to a high of 6029 in early trades, and the Sensex has edged up 108 points to 19,958
Markets have witnessed a steady upmove after the 10% retracement when markets hit a low on Friday. Gaurang Shah, Asst. Vice President, Geojit BNP Paribas Financial Services said, "Whenever there is 5% correction in the markets, investors should allocate some of their investable surplus."
In the global arena, Wall Street saw an early Christmas, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite surged more than 2% bolstered by positive data from jobs sector, productivity and construction spending. Furthermore, possibility that
Euro zone crisis might get resolved lend support.
In Asia, Hong Kong’s Heng Seng has risen over 1% buoyed by resource producers and banking shares, China's Shanghai Composite has edged up 1.6%. Japan's Nikkei 225 has climbed higher by 1.8% led by exporters. Strait Times has moved up 0.6%, Seoul Composite has surged 0.8%, Taiwan Weighted has jumped 0.7%.
Realty stocks were continuing their up move helped by bargain hunting after stocks plunged between 20-40% last week. Anant Raj Industries (up 3.5%), D B Realty (up 5%), Ackruti City (up 4.3%) have been leading the gains.
Banking shares remained in focus after government approved around Rs 6000 crore capital infusion to improve capital adequacy and increase government's stake in banks. Bank of Baroda (up 2.7%), Bank of India (up 1.7%) and ICICI Bank (up 1.6%) have been the top gainers.
ONGC is in the limelight after it received a share split nod from the government and bonus issue, the share is up 2.7%. Also, another stock Welspun India has advanced 0.7% may after it announced that it will foray into tech textiles and invest Rs 700 cr.
Auto shares hit the brake after riding in top gear yesterday. Hero Honda has dived 4.5% after it agreed to increase royalty payments made to Japanese automaker Honda Montor Co to 8% of overall annual sales in return for a technology makeover and a stake sale. Other losers are Mahindra and Mahindra (down 0.6%) and Maruti Suzuki (down 0.2%).
The stock has risen 2.8%. Besides, ONGC, ACC (up 2.2%), Sterlite (up 2%) and Reliance Communication (up 2%) are the top gainers
on Sensex. Hero Honda, NTPC (down 1.6%) and Tata Power down (1.4%) are the main losers.
Broader markets are also trading firm in the morning session, midcap and smallcap index has risen over 1% each.