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.