Markets open firm, realty shares advance

Markets opened higher following firm global cues and strong data from the US and worries over Greece took a back seat. The S&P CNX Nifty gained 40 points, at 5,666 and the benchmark Sensex advanced 150 points, at 18,910.

Markets across Asia also advanced in the morning session led by firm US manufacturing data and easing of concerns over Greece. Exporter and financial shares were leading the gains in the morning session. Hong Kong’s Hang Seng Index advanced 1%, China’s Shanghai Composite Index added 1.8% and Japan’s Nikkei Stock Average was up 1.1%.

Back in India, the S&P CNX Nifty index rallied from lows of 5,250 and sailed past the 5,600 level in six trading sessions followed by some profit booking on Friday. The recent gains also helped lift sentiment, causing analysts' to believe that there is more steam left in the rally. PINC Research in the weekly note said, “The index is heading toward 6,050-6,075, middle of the trend channel for over last 18 months, however, a minor blip to a larger uptrend cannot be ruled out.”

Analysts are betting that second half of FY12 will be better than first half as commodity prices ease and inflation comes off. Going forward monsoon and first quarter earnings will shape the direction of the market. Additionally, after the summer session impasse in the parliament, there are expectations that the government may pass through some reforms in the monsoon session in sectors such as retail which may give further fillip to the markets.

BSE Realty index was the top gainer, up 2.5%. Sobha Developers added 5%, DLF gained 4.1% and Anant Raj Industries was up 3%.

BSE Oil & Gas index was up 1%. Petronet LNG gained 1.5%, Reliance Industries rebounded and was up 1.4% and Gail India gained 1.2%.

Among individual stocks ICICI Bank was up 0.8% after it said on Friday evening that it would raise its benchmark base by 25 basis points to 9.5% per year.

Top gainers on the Sensex were DLF, up 3.9%, Sterlite Industries rallied 2.3% and Reliance Infra gained 1.9%. Only two components on the Sensex were trading in the red, Tata Steel was down 0.7% and Maruti Suzuki declined 0.7%.

From the broader markets, midcap index gained 1% and smallcap index added 0.9%.

Market breadth was positive, 1361 stocks advanced for 455 stocks which declined.