Markets continued to trade in the green on strong cues from global peers. The Sensex gained to a high of 19783 in opening deals but pared some of its gains. The index is now up 26 points at 19693. Nifty is up6 points at 5977.
Asian markets too traded with a positive bias after Chinese trade data. In China, exports rose 14.1% in December from a year earlier compared to analysts forecast a figure closer to 4% while imports gained 6% indicating stronger domestic demand.
HSBC further cut its India growth forecast for the current and next fiscal years, saying the slowdown in the economy has become more structural than cyclical. HSBC cut its GDP forecast for the year ending in March to 5.2% from 5.7%, and its forecast for the next fiscal year to 6.2% from 6.9%, according to a report released on today.
Back home, investors were cautious ahead the Infosys' Oct-Dec earnings this Friday and the European Central Bank meeting later in the day where the central bank is expected to keep interest rates steady.
The rupee today gained 15 paise to 54.60 against the US dollar in early trade at the Interbank Foreign Exchange market on the back of increased capital inflows.
BSE PSU index is leading the gains on the sectoral list this morning. The index is up 1% at 7,687. Auto, oil & gas and realty indices have also strength and are up around half a per cent each. However, BSE capital goods and consumer durables are down marginally in morning deals.
Tata Motors continued its good run and was up 2% at Rs 333. PSU shares - ONGC and Coal India added 2% smartly in trades. Wipro was up 1.4% at Rs 402.
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Market heavyweight, Reliance Industries is up marginally at Rs 854. Infosys is absolutely flat ahead of its results.
On the other hand, BHEL has slipped 1.3% to Rs 234. ICICI Bank, Hindalco, TCS and Bharti Airtel are some of the other key losers this morning.