Markets open firm tracking global cues, ONGC up 3%
Markets have extended yesterday’s gain and have commenced higher tracking global cues. All eyes are also on the third quarter GDP numbers due today. By 9:40, the Sensex was up 212 points at 17,943 and the Nifty gained 66 points to 5,442.
On the global front, strong US Consumer Confidence helped extend Wall Street's rally on Tuesday, with the Dow closing above 13,000 for the first time since May 2008. The Standard & Poor's 500 Index gained 0.34% to 1,372.
Asian stocks firmed and the euro held its ground on Wednesday ahead of a fresh cash injection by the European Central Bank. Barring Shanghai, all the Asian markets are trading firm. Nikkei, Strait Times, Hang Seng, Taiwan and Kospi have gained between 1-2%.
Back home, if the Nifty trades above 5,430 levels, it would give positive breakout on charts and the next target would be at 5,510, analysts say.
All the sectoral indices are trading in green zone in the opening trades. BSE Realty index has zoomed by nearly 3% followed by counters like Capital Goods, PSU, Power, Metal, Consumer Durable, Oil & Gas, Auto and Banks, all gaining by nearly 2% each.
Index heavyweight Reliance Industries has extended the gains and has surged by almost 2%. ONGC has increased over 3% after the government decided to offload 5 per cent stake through auction route on March 1 at a likely floor price of Rs 290 a share.
BHEL is the top Sensex gainer, up by almost 4%. L&T has gained by over 2%.
Realty stocks continue to be in focus on expectations that the central bank will start cutting interest rates in the coming months to prop up slowing economy. DLF has zoomed by over 2%.
From the banking and financial space, SBI and HDFC Bank have gained between 1-2% on hopes of rate cut by the central bank as concerns over rising inflation eased.
Metals stocks like Sterlite, Hindalco, Tata Steel and Jindal Steel have gained between 2-2.5%.
The broader markets are performing in line with the benchmark indices with BSE Midcap and Smallcap indices gaining over 1% each.
The market breadth in BSE remains strong with 1,166 shares advancing and 254 shares declining.