The markets have turned positive after a weak opening, amid volatile trades, with investors awaiting the outcome of UP state election results due later today. At 9:40, the Sensex gained by 106 points at 17,469 and the Nifty was up 36 points at 5,317 levels.
World equity markets slipped on Monday after economic data raised expectations of a recession in Europe and global growth driver China signalled a slower economic pace ahead. The Dow Jones industrial average closed down 0.1 % at 12,963. The Standard & Poor's 500 Index fell 0.4 % to 1,364.
Asian shares and growth-linked currencies are under pressure today as slowing economies in China and Europe and tension over Iran dampened sentiment, prompting investors to take profits from recent rallies that had been driven by ample liquidity. Hang Seng, Nikkei, Shanghai and Strait Times have declined by almost 1% each.
Back home, the Nifty is expected to find support at 5,240 and 5,170 levels if it trades below 5,260 levels, technical analysts suggest.
On the sectoral front, BSE Realty, Bankex and Auto indices have gained by nearly 1% each. However, BSE Oil & Gas and Metal indices have plunged by almost 1% each.
IT major Infosys has gained by neraly 1%.
Banking shares are in focus on the bourses at early trades on hopes of another reduction in the cash reserve ratio (CRR) of banks by the Reserve Bank of India (RBI) to ease the severe liquidity in the system. Stocks like ICICI Bank and HDFC Bank have gained by almost 1% each.
DLF is the top Sensex gainer from the Realty space.
Auto stocks like Tata Motors, M&M, Bajaj Auto and Maruti Suzuki have gained between 0.3-1%.
Index heavyweight Reliance Industries has declined by almost 1%.
From the Metal space, Hindalco is the top Sensex loser, down 4%. Tata Steel, Sterlite and Jindal Steel have declined between 1-2%.
Meanwhile, Meanwhile, BSE Midcap index has gained by 0.5% whereas BSE Smallcap index has inched up by 0.2%.
Jaypee Group companies – Jaiprakash Associates and Jaiprakash Power Ventures have slipped more than 4% each, extending their yesterday’s over 5% fall, on reports that the Samajwadi Party (SP) appears all set to emerge as the single largest party in the political live-wire state of Uttar Pradesh.
The market breadth in BSE remains healthy with 891 shares advancing and 465 shares declining.
