Markets opened marginally higher shrugging off subdued global cues. Nifty was up 14 points, at 5700 and the Sensex surged 70 points, at 19,012.
While the markets have posted marginal gains in the morning session, choppiness may continue on account of derivatives expiry this week coinciding with the financial year end. According to the provisional data, (FIIs) Foreign Institutional Investors were net buyers of Rs 890 crore in the cash markets yesterday, while DIIs (Domestic Instiutional Investors) were net sellers to the tune of Rs 287.5 crore.
Across Asia, markets were trading mostly in the red following weak overnight cues from Wall Street. US Markets ended lower led by low volume and earnings concern. Nikkei Average fell 140 points, as Japan struggled to bring down the earthquake striken nuclear power plant under control. Hang Seng's Hong Kong fell 41 points on back of losses in heavy weight and property developers. Shanghai Composite was also down 7 points.
Emerging Markets have been outperforming the developed markets since March despite crisis in Japan, West Asia and Europe's, investors have turned net buyers of $680 million in the Asian Markets according to Mirae Asset Weekly Note. Mirae Asset Management expects Indian markets to consolidate at current levels and find near term direction as events unfold in West Asia and subsequent impact of crude prices.
BSE Auto index was leading the gains, the index was up 0.8%. Hero Honda was in top gear, up 2.3%, Exide Industries climbed 1.5% and Bajaj Auto was up 1.4%.
Profit booking was witnessed in realty shares, the BSE Realty index was down 0.5%. Top losers were Godrej Properties, down 2.1%, Mahindra Lifespace fell 1.5% and Unitech was off 1.3%.
Top gainers on the Sensex were Reliance Communication and Bharti Airtel, up 2.5% each, and Hero Honda gained 2.3%. Only four components on the Sensex were trading in the red, DLF fell 1%, followed by JP Associates, down 0.7%, BHEL declined 0.6% and Tata Motors was off 0.3%.
In the broader markets space, the midcap and smallcap indices were up 0.5% each. Market breadth was positive, 1168 stocks advanced for 690 stocks which declined.