Markets open higher tracking global cues; Nifty above 7,300

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

By 9:25, the Sensex was higher by 145 points at 24,520 and the Nifty gained by 34 points at 7,311 levels.

Markets continue to maintain the steady trend on hopes that a Modi-led disposition would mark a paradigm shift in governance and herald a new era in economic reforms.

Foreign institutional investors (FIIs) sold shares worth a net Rs 294.99 crore on Thursday, as per provisional data from the stock exchanges.

Meanwhile, State Bank of India, and cigarette major ITC are scheduled to unveil Q4 March 2014 results today.

Deutsche Bank downgraded Indian stocks to "neutral" from "neutral/overweight" relative to other global emerging markets, saying valuations, after a sharp rally on Bharatiya Janata Party's (BJP) decisive election win, appear "very stretched" against lower GDP growth.

On the global front, US stocks ended higher for the second straight session on Thursday, led by small-cap stocks, while the Nasdaq climbed on a rally in biotech shares.

The surge in biotech stocks extended the recent trend of volatile trading. Small-caps and the so-called momentum names in the Internet and biotech spaces have recently echoed the broader market's direction, but moved in an outsized fashion, often without specific news.

Asian shares edged up to one-year highs on Friday as investors lapped up signs of improving momentum in the world's biggest economies, with Tokyo's Nikkei poised to score its first weekly gain in over a month thanks to a weaker yen.

The improved risk appetite nudged US debt yields higher and supported the dollar, which is on track to notch its first weekly gain against the yen since April.

Back home, the rupee is trading at 58.55 per dollar vs previous close of 58.59/60.

On the sectoral front, BSE Realty index has surged by nearly 2% followed by counters like Capital Goods, Power, Metal, Auto and FMCG, all gaining by 1% each. Infact, all the major BSE sectoral indices are trading in positive zone.

The main gainers on the Sensex at this hour include Coal India, NTPC, Tata Power, Bajaj Auto, ITC, ONGC, Sesa Sterlite, Sun Pharma and BHEL.

Reliance Comm has gained by over 3% on report of undersea cable JV with Citic Telecom.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained by over 1% each.

The market breadth in BSE remains healthy with 1,103 shares advancing and 194 shares declining.