Markets open higher tracking global cues; Dec WPI eyed

Markets have started the trading session on higher note tracking positive global cues.

By 9:25, the Sensex was higher by 137 points at 21,170 mark and the Nifty gained by 40 points at 6,281 levels.

Traders will eye December wholesale price inflation to be announced today which is seen at 7% and considered to be key ahead of the Reserve Bank of India (RBI)'s rate review on January 28.

Retail prices rose an annual 9.87% last month, slower than expected, as vegetable prices fell, giving some relief to policymakers struggling to contain price pressures as growth hovers at a decade low.

On the global front, US stocks rose on Tuesday, erasing much of the previous session's steep drop, as a strong December retail sales reading eased concerns that economic growth might be slowing.

Google rose 2.4% to $1,149.40, giving a large boost to the outperforming Nasdaq, a day after the company announced plans to acquire Nest Labs Inc. The $3.2 billion deal will give Google a promising line of products and a prized design team.

Asian shares made guarded gains on Wednesday as surprising strength in US consumer spending reassured investors the recovery in the world's largest economy had not been derailed, lifting the dollar and Wall Street. A pullback in the yen was welcomed by Japanese shares, with the Nikkei bouncing 1.4% after suffering its sharpest daily drop in five months on Tuesday.

Progress elsewhere was patchy with investors suffering whiplash after several days of wild swings. Australia made the early running with a bounce of 0.6%, while Seoul managed a rise of 0.2%.

MSCI's broadest index of Asia-Pacific shares outside Japan was dead flat.

Back home, YES Bank, DCB Bank, Bajaj Finserv, Bajaj Finance and Agro Tech Foods will unveil their December 2013 quarterly results today.

On the sectoral front, BSE Metal index has surged by over 1% followed by counters like Capital Goods, Realty, Power and Auto, all gaining by nearly 1% each. Infact, all the major BSE sectoral indices are trading in green zone.

The main gainers on the Sensex at this hour include Coal India, Hindalco, TCS, Cipla, Sesa Sterlite, ONGC, L&T, ICICI Bank and Tata Motors.

Coal India is the top Sensex gainer, up by over 3%. Coal India board has approved a special dividend for the current financial year, which would fetch Rs 16485.71 crore to government exchequer and help meet its disinvestment target of Rs 40,000 crore.

The CIL board, which met late Tuesday, approved highest ever interim dividend of Rs 29 per share of face value of Rs 10.

The broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices have gained between 0.3-0.4%.

The market breadth in BSE remains positive with 676 shares advancing and 194 shares declining.