Markets surge in opening deals

Markets has opened in the green, following cues from Asian markets. The Sensex is up 299 points at 17,085. Nifty is up 84 points at 5,134.

In Asia, markets have rallied on hopes of a solution to the European debt crisis. Over the weekend, leaders seemed to have neared an agreement on bank recapitalisation and leveraging their regional rescue fund. Wednesday's summit will show how the solution pans out. The Hang Seng has surged 2.7% this morning to 18,523. Nikkei, Seoul Composite and Taiwan Weighted have rallied 1-2% each.

On Friday, the Sensex traded above the dotted line but erased gains in the second half after Larsen & toubro came out with their numbers. The index ended down 151 points at 16,785. This holiday-truncated week is likely to see some action as traders roll-over positions on Thursday. Markets will also look at the RBI monetary policy for direction.

The trend deciding level for the day is 16,857/5,070 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,961 – 17,137 / 5,101 – 5,152 levels. However, if nifty trades below 16,857/5,070 levels for the first half-an-hour of trade then it may correct up to 16,681– 16,577 / 5,018 – 4,987 levels, says Angel Broking in a research report.

Financials are up in the green. ICICI Bank, HDFC Bank and SBI have together contributed around 52 points to the Sensex's upmove. Among other stocks, Axis Bank on Saturday reported 25 y-o-y per cent growth in net profit to 920 crore for the quarter ended September 30. The stock is up 3% at Rs 1,158.

ONGC has gained 2% at Rs 271 on reports that the company will get a windfall of over 1,300 crore from the domestically produced natural gas with the rupee touching a 30-month low against the dollar.

Autos also have moved up. Tata Motors has recovered from its fall on Friday. The stock is up 2.8% at Rs 183. Maruti is extending its gains and is up 2.3% at Rs 1,118. IT majors, TCS and Wipro are supporting the index. The stocks are up 2.5% each in morning deals.

However, Larsen & Toubro has not managed to recover from its dissapointing results on Friday. The stock is down marginally at Rs 1,333.

Vaswani Industries has plunged to Rs 13, a huge 73% discount against its issue price of Rs 49 per share, after listing at Rs 33.45 on the Bombay Stock Exchange. Around 120,000 shares have changed hands on the counter in opening deals.

BSE market breadth is extremely positive. Out of 1,163 stocks traded, 889 stocks have advanced and 251 stocks have declined.