Markets marginally up in early trades

The Indian markets are trading marginally higher on the first trading day of 2012, in the absence of global cues. The BSE Sensex is at 15,514, up 59 points and the Nifty is at 4,635, up 10 points. Most markets across the globe, including the US and Asia, are closed for trading.

India's benchmark share indices ended nearly 2 per cent down in the week to December 30, the last trading week of 2011, weighed down by bank shares on rising worries over asset quality in a slowing economy and selling pressure in R-I-L on concerns over lower gas output from KG-D6 field.

For the week ended December 30, the 30-share Sensex ended at 15,455 down 284 points or 1.8 per cent. The S&P CNX Nifty closed at 4,624 dropping 90 points or 1.9 per cent.

Analysts suggest that, technically, the 4,800 mark has become a strong resistance to deal with for the Nifty and the market is expected to trade in the lower regions in the days to come. At 720 am Indian Standard Time, the SGX Nifty was trading at 4638 levels, up 12 points.

On the sectoral front, BSE Auto, Consumer Durables and Metal indices are leading the gains, having advanced nearly 1% each.

Tata Motors, Ashok Leyland, Mahindra & Mahindra and Exide Industries are the notable gainers from the Auto pack, having gained 1-2% each.

Bajaj Electricals, Titan Industries, Videocon Industries and TTK Prestige, up 1-2% each, are the prominent gainers from among the Consumer Durables.

BSE IT is marginally down at 5,728.

Among the Sensex 30 stocks, BSE Tata Motors, ICICI Bank, Bharti Airtel, Mahindra & Mahindra and Coal India, are the prominent gainers, up 1-2% each.

The losers from the pack are HDFC Bank, DLF, Cipla, TCS and Infosys, having shed nearly 1% each.

Indian Oil and Jindal Steel & Power have gained nearly 1% each during morning trades, on reports that New Zealand-based renewable energy company LanzaTech is in talks with these companies for setting up a plant to produce commercial bio jet fuel from ethanol.

Aviation stocks are flying high in morning trades after state-owned oil companies have cut jet fuel price by over 1 per cent in step with softening in the commodity's international rates. Jet Airways has gained 3% at Rs 175. Kingfisher Airlines has gained 2% at Rs 21.5. Spice Jet has gained nearly 3% at Rs 17.3.

The overall market breadth is negative as 1,451 stocks have declined against 1,327 advancing ones, on the BSE.