Nifty opens above 5,900, bank shares rise

Global positive cues coupled with reforms back home aid gains

The National Stock Exchange's 50-share Nifty index opened above key 5,900 level on Wednesday led by gains in banking stocks after government cleared contentious banking bill yesterday and amid building confidence that the US will reach a budget deal with Congress to avoid fiscal cliff.

The Bombay Stock Exchange's Sensex index rose 65.16 points to open at 19,429.91 while the National Stock Exchange's Nifty-50 index gained 20.50 points and opened at  5,917.30.

On the global front, US stocks rose extending a rally that lifted the S&P 500 to its highest in nearly two months, as optimism grew that a deal would be made to avert the "fiscal cliff." amid hopes of economic stimulus from the Bank of Japan this week.

The Dow Jones industrial average ended up 115.57 points, or 0.87%, at 13,350.96. The Standard & Poor's 500 Index rose 16.43 points, or 1.14%, at 1,446.79. The Nasdaq Composite Index was up 43.93 points, or 1.44%, at 3,054.53 in closing trades.

European shares also ended higher, with a key index closing just a few points below its 2012 high.

Mirroring the improved risk-appetite, Asian markets are trading positive too with  Hong Kong's Hang Seng was up 0.73% to 22,660 while Japan's Nikkei rose 1.3% to 10,050. China's Shanghai Composite was marginally down by 0.1% to 2,160.

The MSCI Asia Pacific index outside Japan gained 0.32% to 899.09.

Back home, all sectoral indices were up with automobiles, real-estate, banks, metals leading gains on BSE.

Among key Sensex stocks, Maruti Suzuki rose 1.2% and BHEL rose 1% while Sterlite Industries and Tata Steel also rose 1.2% each in metal space and ONGC gained 1% were among top gainers while the laggards included Dr Reddy's marginally down 0.03%.

BSE-banking index was up 1% led by buying in Punjab National Bank, Bank of Baroda and State Bank of India.

The BSE mid-cap and small-cap gained 0.3-0.6%.

The overall breadth is strong as 618stocks gained while 145 stocks declined on the BSE.