Markets open firm on US 'fiscal-cliff' resolution

Metals, banks, power sectors lead gains on BSE

Indian shares opened higher on Wednesday after US Senate passed a bill that aims to avoid the cliff's automatic implementation of $600 billion in spending cuts and tax increases.

The Bombay Stock Exchange's Sensex index rose 111.73 points to open at 19,692.54 while the National Stock Exchange's Nifty-50 index jumped 31.75 points at  5,982.60.

Global risk appetite was firm after US lawmakers agreed on a deal to avert "fiscal cliff", however, uncertainty in the House of Representatives, where a number of Republicans complained it did not tackle spending cuts adequately loomed. The voting will start at 9:45 IST.

Asian markets traded firm. Hong Kong's Hang Seng gained 2% to 23,062, Taiwan's Weighted index rose 1% to 7,784,  Singapore's Straits Times was up 1% to 3,200  in morning trades. Equity markets in Japan and mainland China are closed today and tomorrow for public holidays.

MSCI Asia-Pacific index outside Japan rose 1.8% to 916.07.

On the domestic front, all sectors were trading positive. Metals, real-esate, power, capital goods, autos, PSU led gains on BSE.
Among key Sensex stocks, Hero MotoCorp rose 1.4%, in metal space, Sterlite and Hindalco gained 1% and 1.2% while Tata Steel rose 1.2%. In Infrastructure space, BEHL and Larsen & Toubro gained 2% and 1% while SBI and ICICI rose 1% on BSE.

The broader markets outperformed benchmark indices with mid-caps and small-caps gaining 0.6% on BSE.

The market breadth is strong as 796  stocks gained compared to 146 declines on BSE.