Markets pare gains, eye on F&O Expiry

Markets opened firm bouyed by strong global cues but profit booking in selective FMCG & IT stocks weighed on the Indices. The Sensex opened at 20,200 and touched the day's high at 20,452, up 253 points. The benchmark index partly pared the morning gains to end at 20,303, up 137 points as investors trimmed positions ahead of the futures and options expiry this week; the S&P CNX Nifty ended at 6106, up 40  points.

Asian markets also ended mostly in green after Group of 20 nations reconciled to defuse the currency market tensiona although there was no concrete deal. Expectation of further monetary easing also bostered sentiment across Asia. Japan's Nikkei Stock Average edged down 0.3% after a choppy session; exporters played a spoil sport as Yen rose to 15-year high against the greenback. Markets in Hong Kong hopped higher, ended up 0.5%, buying was seen in realty and commodity shares. China's Shanghai Composite rose 2.6%, South Korea's Seoul Composite surged almost 1% and and Taiwan Weighted rose 1.7%.

European markets were also trading firm on merger and acquisition news, CAC 40, DAX and FTSE 100 were almost 0.5% higher; Euro-zone August industrial orders jumped 5.3%, luxury-goods firms LVMH Moet Hennessy Louis Vuitton and Hermes International zoomed on deal news.

In India, markets are expected to remain range bound this week in wake of derivatives expirty. Technial Analysts Devangshu Dutta said, "selling pressure is seen on the Nifty with support at 6100 and 6070, and resistance at 6150."

From the IT space, investors dumped Wipro shares after Credit Suisse downgraded the stock to neutral from outperform, the share ended down 4.1% at Rs 430.

FMCG major ITC also dipped 1.7%, however Hindustan Unilever gained 1.4% after it reported double digit growth of 32% in the September Quarter.

Despite Brokerage donwgrades and lower than expected net profit, investors cashed in on ACC and Ambuja Cements, cemental major ACC surged 4.1%, and Ambuja Cements rose 2.8%.

Broader markets also pared partial gains, Midcap and small indices ended up 0.7% and 0.9%.

High beta metal stocks were on the buzzer, Hindalco, up 4.1%, Sterlite, up 2.4% and Jindal Steel, up 1.5% were among the top gainers on Nifty.

Power Grid Corporation, down 3.1%, Sesa Gosa, down 1.9% and Suzlon, down 1.8% were the top losers on Nifty.