Markets open higher, Auto shares in top gear

Markets opened firm on back of firm cues from Asia and after Budget 2011-12 betted on brisk growth. The Sensex was up 142 points, at 17,964 and the Nifty advanced 42 points, at 5381.

US markets ended in the green on Monday with the Dow Jones adding 0.8% to 12,226. Nasdaq was unchanged at 2,782. S&P 500 advanced 0.5% to 1,327.

Asian markets were trading with a positive bias this morning. The Hang Seng added 25 points to 23,363. Nikkei jumped 73 points to 10,697. Taiwan Weighted and Straits Times surged 1% each to 8,692 and 3,041, respectively.

While FIIs have removed around $1.6 billion from the Indian markets so far this years, analysts are bullish on India's growth story. Nilesh Shah, Market Analyst said, "that FIIs are here to stay invested for long and investors will buy in the current market.  The developing economies growing at the rate of 7-8% will continue to be attractive."

Shah expects, "the long developed markets and short emerging market trade to reverse by end of Q2FY11 and money flow to begin in emerging markets from developed ones. Obviously, India has to by then convince FIIs that growth is now on the way up and sustainable, with inflation is coming under control."

Automakers were in focus today on account of February sales numbers. Tata Motors, Maruti and Mahindra & Mahindra were on the buzzer, up over 2% each as they are set to report February sales number.

BSE Realty index continued to lead the gains for the second straight session, up 1.7% after government announced a numbers of sops in Budget 2011-12 which would give fillip to the sector. Unitech was up 2.1%, DB Realty surged 2.1% and DLF was up 1.9%.

Prominent gainers on the Nifty were IDFC, and JP Associates, up 2.7% and Axis Bank advanced 2.6%. Only 7 stocks were trading in the red on Nifty, Dr Reddy fell 0.7%, Cair India was down 0.6% and Wipro was off 0.5%.