Markets on a firm ground

Breadth positive as 1,406 stocks advance while 606 decline

Markets are trading on a firm note in the morning deals. The Sensex has advanced 85 points to 16,992 and the 50-share Nifty has jumped 30 points at 5,150 levels. Meanwhile, some amount of selling pressure visible in the heavyweight stocks such as Hindustan Unilever, Tata Motors and ONGC.

Power stocks are in limelight today after the Delhi Electricity Regulatory Commission (DERC) announced a 26% increase in power tariff for all domestic consumers with effect from July 1.

Shares of sugar manufacturers are in limelight in morning trades on reports that the Food Ministry is considering a proposal to reduce the quantity of non-levy sugar for the September quarter and concerns over the output due to the dry weather in key growing areas.
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(Updated at 9.20 AM)

Markets have opened higher in trades today ahead of the F&O expiry due tomorrow. The Sensex has jumped 100 points 17,006 and the 50-share Nifty has advanced 34 points to 5,155 levels.

Overnight, the Dow Jones industrial average edged up 0.3% and the S&P 500 Index gained 0.5%.

Asian markets are trading flat as investors seemed convinced a European summit this week will fail to take concrete action to solve the euro debt crisis, with Germany staunchly opposed to sharing the region's debt burden.

The Nikkei was unchanged at 8,664, Shanghai Composite advanced 0.3% to 2,229 and the Hang Seng added 1.2% to 19,201 levels.

Back home, technical analysts believe that on the upside, the Nifty has resistance at 5,200 levels while downside support is at 5,000 levels.

Among the Nifty stocks, Tata Power is the top gainer. The stock has opened higher by 3% at Rs 98 after the power regulator, DERC, raised the domestic tariff in Delhi by 24.15% for the year 2012-13.

Reliance Infrastructure, GAIL (India), IDFC, Sesa Goa ICICI Bank, SAIL, J P Associates, HDFC Bank, Bank of Baroda and State Bank of India have also opened higher by 1-3% each. on the other hand, BPCL, ONGC, Hindustan Unilever and Grassim are among the notable losers from the heavyweight pockets.

Buying interest is visible across the board. The BSE power index is the top sectoral gainer, up 1% at 1,911 levels. BSE banking index- bankex is also up 0.8% at 1,597. Metal, teck, IT, realty, capital goods, FMCG, PSU and hearlthcare indices have also opened on a firm note, up 0.5-0.8% each.

The broader markets have also opened higher. The BSE mid-cap index is up 24 points at 6,054 and the small-cap index is up 29 points at 6m453.

The overall breadth is positive as 889 stocks are advancing while 346 are declining.