Markets open firm, HCL Technologies zooms 7%

Markets opened higher tracking firm Asian peers and better than expected results posted by HCL Technologies. The Nifty surged 58 points, at 5800 and the Sensex advanced 187 points, at 19,310.

HCL Technologies, a medium sized software services provider reported upbeat results. The consolidated revenues for the third quarter was up 5.57% at Rs 4077.9 crore versus Rs 3862.5 crore in the last quarter. Net profit surged 16.2% to Rs 461.3 crore versus Rs 397 crore seen in the previous quarter. Financials such as ING Vysya Bank was up 3% and Yes Bank gained 2.9% ahead of fourth quarter earnings today.

Jagannadham Thunuguntla, strategist & head of research at SMC Global Securities said, "companies may report around 18% profit growth this quarter. If that is not met, there could be a decent correction going forward."

Also market sentiment improved after IMD (Indian Meteorological Department) announced that South-West monsoon will be normal, increasing expectations of robust farm output which may bring a relief from high food prices.

Overnight, US Markets rebounded on earnings optimism after Johnson & Johnson earnings beat forecast, the company is listed on Dow Jones. The Dow Jones Industrial Average was up 0.5%, the Standard & Poor’s 500 Index was up 0.6% and the Nasdaq Composite gained 0.4%. In Asia the Nikkei Stock Average was up 1% following gains in tech shares. Hong Kong's Hang Seng advanced 1.4% buoyed by property and resource shares. Shanghai Composite also gained 0.5%.