Markets open higher on firm global cues; HCL Tech up 2%

Markets extended gains on Thursday, amid firm global cues,  with index heavyweights leading the gains.

The Sensex was up 82 points at 21,371 and the 50-share Nifty was up 23 points at 6,344.

Markets had surged yesterday as declining December WPI raised hopes that the central bank would keep key policy rates on hold for the second straight month.

Asian shares rose on Thursday after a set of robust U.S. data and upbeat earnings from Bank of America helped squash concerns of a slowdown in the world's largest economy following disappointing jobs growth in December.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1% in early trade, though holding below its 200-day moving average.

Japan's benchmark Nikkei was up 0.4% while Hang Seng gained 0.2%. However, China's Shanghai Composite was down 0.1% while Straits Times was trading flat.

U.S. stocks rose on Wednesday, with the S&P 500 climbing to an all-time closing high after strong earnings from Bank of America and data signaled that the economy was improving.

In the latest economic data, the seasonally adjusted Producer Price Index rose 0.4% last month, the biggest increase since June, although inflation pressures remained benign. The Federal Reserve Bank of New York's "Empire State" index of general business conditions climbed to its highest level in 20 months.

The data reassured investors that the economy is able to stand on its own even as the Federal Reserve begins to slow its massive stimulus programs, which contributed to huge equity gains in 2013. Wall Street's rally on Wednesday erased some of 2014's early weakness, putting the S&P 500 near the break-even level for the year.

In its latest Beige Book report on business activity, the Fed said the economy grew at a moderate pace from late November through the end of 2013, with some regions of the country expecting a pickup in growth.

The Dow Jones industrial average rose 0.66%, to end at 16,482. The Standard & Poor's 500 Index advanced 0.52%, to close at 1,848. The Nasdaq Composite Index gained 0.76%, to finish at 4,215.

HCL Tech was up 2% after it posted a Q2 consolidated net profit of Rs 1,496 crore, up 5.7% q-o-q and 58.4% y-o-y. Consolidated revenue came it at Rs 8,184 crore, up 2.8% q-o-q and 30.4% y-o-y. EBIT was Rs 1,941 crore, up 2.4% q-o-q and 58.7% y-o-y.. The IT major reported consolidated dollar revenue of $1,321 million, up 4% q-o-q.

TCS was up 0.4% ahead of its third quarter earnings scheduled to be announced later today. The company is likely to deliver another industry-leading performance, a seasonally weak quarter notwithstanding.

According to consensus Bloomberg estimates, TCS is likely to post revenue of Rs 21,407 crore, up 2.1 per cent sequentially. Net profit is pegged at Rs 5,124 crore, a sequential rise of 10.6 per cent; earnings before interest, tax, depreciation and amortisation margin is seen flat, at 31.4 per cent.