Markets opened marginally higher led by gains in heavyweight State Bank of India, however Reliance Industries weighed. The Sensex was up 25 points, at 19,032 and the Nifty surged 10 points, at 5707.
Reliance and State Bank of India influenced the direction of market in opening trades. Reliance Industries dipped 0.2% after third quarter profit lagged market estimates. On the other hand heavy weight State Bank of India pulled the Sensex higher after net profit surged 14% beating analyst forecast led by strong growth in net interest income.
Analysts expect markets to remain volatile on back of derivatives expirty, corporate earnings and credit policy review tomorrow. Avinash Gupta, Vice President Research Equity, Bonanza Portfolio Limited said, "the market is expected to consolidate in a range of 5550 and 5800."
Other markets in Asia were trading mixed on back of bargain buying after the sell-off last week. All eyes are on the US Federal Resesrve meeting this week. Japan's Nikkei Stock Average was up 0.4%, at 10,312. Hong Kong's Heng Seng index was trading in a tight range, the index slipped 0.1%, at 23,862 dragged led by losses in resource and insurance shares. China's Shanghai Composite reversed gains, the index was down 0.2%, at 2,711 on back of concerns about further tightening.
BSE consumer durables and capital goods were leading the gains from the sectora pack. From the consumer durables space Bajaj Electricals surged 1.4%, Blue Star was up 1.3% and VIP Industries gained 1.1%. From the Capital Goods pack thermax rose 1.9%, BHEL was up 1% and Gammon India also zoomed 1%.
IT shares were a laggard in trade. Wipro continued its losing the streak, the stock was down 2.1% for the second consecutive day, Infosys fell 0.5% and Patni Computers was off 0.4%.
The top gainers on the Sensex were SBI surged 2.5%, BHEL advanced 1.6% and Tata Steel Climbed 1.3%. From the losers Wipro dipped 1.9%, RIL slipped 1.1% and Hindalco Industries was off 1%.
Broader markets outperformed the benchmark, the midcap and smallcap indices were up 0.7% and 0.8% each.