Markets notched marginal gains in opening trades on back of strong global cues. The Sensex was up 56 points, at 5757 and the Nifty gained 13 points, at 5757.
The credit policy later today will set the sentiment of the market. The Reserve Bank of India in its macro-economic review on Monday said "while downside risks to growth have receded, upside risks to inflation have increased." Analysts expect a 25 bps rate hike today as RBI faces a tough task balancing between growth and inflation.
Volatility may continue on account derivatives expiry this week. Technical Analysts said that trend deciding level for Nifty is 5750. Puneet Kinra, Senior Technical Analyst (Equity Research) from Bonanza Portfolio said, "Nifty showed good strength but could not close above 5750 levels. Nifty is trading in 5625-5750 range. Until Nifty manages to close above 5750 levels, volatility may be seen. However, Nifty's intraday trend is up as long as Nifty trades above 5720 levels."
Markets in Asia rallied after overnight gains on Wall Street. Dow Jones Industrial Average was within a hair of a return to 12,000 mark as investors embraced strong corporate earnings.
Japan's Nikkei Stock Average was up 0.9%, at 10,443 led by gains in exporters on back of rising Yen. Hong Kong's Heng Seng index was trading in a tight range, the index gained 0.7%, at 23,969 pulled by rise in energy producers and banking shares. China's Shanghai Composite slipped 0.2%, at 2,690 on back of losses in commodity stocks after the government said it may scrap export-tax rebates on commodities.
Among sectors rate sensitive banking, realty and auto shares will remain in focus today on account credit policy announcement. BSE Banking index was a laggard in opening trades, Punjab National Bank was off 0.7%, State Bank of India fell 0.3% and Union Bank also declined 0.3%.
Metal shares added seen as they joined the global commodity rally. Sterlite surged 2.1%, Hindalco Industries climbed 1.4% and Tata Steel was up 1%.
Among individual stocks Sesa Goa fell 1.1% after it reported 29% rise in profit supported by higher iron ore prices. There are reports that the company may lose 2 million tons of production from April onwards as the agreement for the Thakurani mine lapsed.
FMCG major Hindustan Unilever surged 0.4% and cement major Cement Grasim Industries fell 0.4% as they are expected to declare December quarter results.
Larsen & Tourbo surged 0.9% on reports that the company will turn into 9 business verticals in a bid to become more aggresive. Idea Cellula, sixth largest mobile operator gained 3% after reported 43% rise in net profit.
Prominent gainers on the Sensex were Wipro up 1.4%, Larsen & Tourbo gained 0.9% and Cipla was up 0.9%. Only three components on the Sensex was trading in the red, SBI fell 0.4%, Infosys and ICICI Bank declined 0.2% each.
Broader markets were also leading the gains, the midcap and smallcap indices were up 0.4% eac
