The markets opened higher, extending Tuesday’s gains tracking positive cues from the Asia and rally in banking shares. The Nifty was up 32 points, at 5,095 and the Sensex was up 130 points, at 17,000.
Overnight, the US markets succumbed to losses on Tuesday but closed well above the day's lowest levels. The US markets extended last week's losses as uncertainty over Europe's health resurfaced. The Dow Jones industrial average, the S&P 500 and the Nasdaq composite closed down between 0.3-1% each.
The Asian markets were trading in the positive zone this morning with the Nikkei, the Hang Seng and the Shanghai Composite were trading higher by over 1% each.
Buying by the Foreign Institutional Investors has also gained some traction lately. They were net buyers of Rs 432 crore in cash, while the Domestic Institutional Investors were net sellers of Rs 415 crore.
Going forward, the markets may take cues from the US President Barrack Obama's speech to the Congress, due on Thursday, highlighting ways to boost hiring. Federal Reserve chairman Ben Bernanke is scheduled to discuss the nation's economic outlook on the same day, in Minnesota.
Back in India, Ashish Chaturmohta from IIFL Private Wealth said, “If the Nifty sustains above the 5080 level, the index may head towards 5130-5140 levels. Crucial resistance is seen at 5240 levels. On the downside, 5s000 acts as psychological support.”
Realty and banking shares were leading the gains, up over 1% each.
Investors cashed in on Bank of Baroda, Union and State Bank of India, up 2% each. Among the frontline shares ICICI Bank, HDFC Bank and State Bank of India contributed 50 points on the Sensex.
From the realty space Parsvanath Developers was on firm ground, up 2.7%, HDIL added 2.6% and Peninsula Land was up 2.5%.
From the broader markets, the midcap and the smallcap indices were up 0.6% each.
Top gainers on the Sensex were JP Associates, up over 4% on news that company may rope in cement business partner and is in talks with Votorantim and Cemex for minority stake sale. DLF advanced 2% after the realty major is planning to move the Competition Appellate Tribunal by early next week to appeal against the Competition Commission of India’s (CCI) order imposing a Rs 630-crore penalty on the firm. Among the banking shares, the HDFC Bank also added 2.1%.
Prominent losers on the Sensex were Tata Motors, down 0.7%, Infosys declined 0.5% and Hindustan Unilever fell 0.3%.
Market breadth was positive, 1157 stocks advanced for 318 stocks which declined.
