Markets opened on a subdued note on back of mixed global cues as crude prices hovered near $116/bbl mark. The Nifty was up 10 points, at 5,666 and the Sensex was up 58 points, at 18,874.
Markest rallied 5.2% last week and brokerages expect markets to maintain positive momentum if Nifty sustains above 5680. India Infoline in the morning note said, "the breakout above 5500 has brought the Nifty within striking distance of its 200 Daily Moving Average (5680 to 5690). We expect accentuated buying in the near term if the Nifty is able to sustain above 5680 level."
The expiry of March derivatives contract this week may keep the markets choppy after 5.2% rallyseen in the past week. SMC Global in the morning note said, "year-end reshuffling of positions by traders may also lead to the volatility." The Nifty VIX was up 3.5%, at 21.2 level. According to the SEBI data, FIIs (Foreign Institutional Investors) were net buyers of Rs 781.2 crore in the month of March.
Investors stayed on the sidelines in Asia as concerns from Japan and West Asia loomed, the Nikkei Stock Average fell 0.4% on renewed worries of radioactive water slowing down repair work at the nuclear power plant.
Hang Seng also pared gains, down 0.2% after China Petroleum & Chemical Corporation Sinopec dipped on new that the company reported lower than expected earnings, 2010 profit surged 14%. However, Coal miners and banking shares continued to lead the gains. Shanghai Composite bucked trend, as the index was up 0.5%.
Back in India profit booking was seen among the IT shares after two consecutive sessions of gains last week. The BSE IT index was down 0.8%. Infosys slipped 1.3%, Core Projects declined 0.9% and TCS fell 0.3%.
FMCG index was the top gainer from the sectoral pack, up 0.7%. Hindustan Unilever was leading the gains, up 2%, Marico advanced 1.7% and United Spirits was up 1.3%.
12 components on the Sensex were trading in the red, Jaiprakash Associates declined 1.9%, Sterlite Industries fell 1.6% and Infosys was off 1.3%. Top gainers on the Sensex were, Tata Motors, up 2.1%, Hindustan Uniliver gained 2% and Larsen & Tourbo advanced 1.7%.
Broader markets were trading flat, the BSE midcap and smallcap indices were up 0.2% and 0.5% each. Market breadth was positive, 1143 stocks advanced for 783 stocks that declined.