Markets gain on Asian cues

Markets started the week on a higher note, following cues from Asian markets.

The Sensex opened at 17,898 - up 169 points. The index was up 209 points at 17,937.

Nifty also saw a good start and was up 61 points at 5,371.

The Bombay Stock Exchange bellwether plummeted by 6.7% or 1,279 points in the last three weeks on the macro concerns, including inflation and an 18-day long crisis in Egypt. But analysts feel military rule after the exit of embattled Egyptian President Hosni Mubarak late on Friday is likely to lift the sentiment on the street.

The Asian markets were in the positive zone. Nikkei and Hang Seng jumped 0.8% each to 22,991 and 10,686, respectively. Straits Times, Shanghai Composite and Taiwan Weighted jumped over 1% each. Investors greeted news of Egyptian President Hosni Mubarak's resignation with relief.

The euro edged up against the dollar but was seen capped by renewed worries about the eurozone debt crisis. Spain and Italy will return to the bond market this week to raise funds.

The foreign institutional investors (FIIs) were net buyers of Rs 1,587.48 crore in futures and options segments on Friday.

Back home, markets reversed losses on Friday and ended with 1.5% gains.The Sensex gained 266 points at 17,729. Nifty was up 84 points at 5,310. However, in the week BSE Sensex swung in a range of 885 points between a high of 18,810 and a low of 19,295 before ending the week down 279 points or 1.5%.

The week may see some positive action. The upcoming Union Budget and an oversold situation, by virtue of the Indian bourses being the worst performer among the emerging markets, are also reasons that could extend Friday's pullback rally. News reports that the Finance Minister Pranab Mukherjee may introduce the much-delayed bill to roll out the GST regime, may also be a positive.

"The trend deciding level for the day is 17,592/5,269 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,889–18,049/5,360-5,411 levels," said Angel Broking.

Financials were in the green. ICICI Bank jumped 4% to Rs 1,001. HDFC and SBI gained 3.5% each. HDFC Bank was up 2% at Rs 2,060.

Tata Motors gained on announcing a good set of numbers for Q3. The stock surged 6% to Rs 1,209. Other auto stocks also advanced on the news. Hero Honda and Maruti Suzuki advanced 2 each.

IDFC, Sesa Goa and Tata Steel jumped 3% each. Larsen & Toubro, Cipla and Jindal Steel gained over 2% each.

Among the losers, ADAG group stocks were down. Reliance Communications slipped 1.6% while Reliance Infra dropped marginally.

Hindalco was in red after a dissapointing Q3 show. The stock slipped 1% to Rs 211.