Markets reversed early losses and edged higher led by rally in frontlines shares as investors picked up beaten down stocks.
Nifty opened lower following weak global cues after Ben Bernanke said that the US economy was weak and interest rates would remain unchanged for an extended period. The index touched a low of 5,252 in opening trades and quickly changed course on bargain buying in frontline shares such as Reliance Industries, Infosys and ITC. The S&P CNX Nifty touched a high of 5,330 in afternoon session.
The Nifty was trading near day’s high, at 5,313, up 35 points and the Sensex was up 174 points, at 17,724 at 14:30 hrs.
Ashish Chaturmotha from IIFL Wealth said, "The Nifty is facing a stiff resistance at 5320 levels, if it sustains well above this level on closing basis with volume support we may see some upside towards 5360 led by short covering." While markets have edged higher today, market analysts said investors should remain cautious in the near term as inflation continues to remain high and rising interest rates will continue to weigh on India Inc.
On the macroeconomic front the food inflation for the week ended June 11 rose to 9.13%.
Among the sectoral pack, BSE Consumer Durables index was the top gainer, up 4.3%. Titan Industries advanced 8%, Videocon Industries gained 4.5% and Rajesh Exports added 1.5%.
Realty shares were leading the