Key Indian equity indices open tad higher, trade flat

Key Indian stock market indices opened marginally higher on Wednesday but the outlook was cautious on the back of weak global macroeconomic data, notably the contraction in US manufacturing sector to its weakest level since June 2009.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened at 26,239.39 points, against then previous close at 26,169.41 points.

Some 10 minutes into trading, it was ruling at 26,199.42 points, with a gain of 30.01 points, or 0.11 percent.

At the National Stock Exchange (NSE), the Nifty was also ruling at 7,960.70 points with a slight gain of 5.80 points, or 0.07 percent.

The two major indices had ended flat on Tuesday, with the Sensex closing at 26,169.41 points, up 23.74 points or 0.09 percent, while the Nifty closed at 7,954.90 points, up 20 points or 0.25 percent.

"The US markets moved notably higher on Tuesday, more than offsetting the moderate weakness seen in the previous session. The strength on US market reflected positive sentiment generated by an overnight rally by stocks in the Asia Pacific region," Angel Broking said.

"The European markets came under pressure on Tuesday, closing mixed despite new unemployment figures from the euro zone showing the region taking a step in the right direction," the brokerage said in a pre-market analysis.

Japan's Nikkei, Australia's S&P/ASX 200 and South Korea's Kospi all shed some value, while the China's Shanghai Composite and Hong Kong's Hang Seng made some marginal gains.