Markets trade firm

The markets are trading firm after a quiet opening with the Sensex gaining 136 points at 18,632 and the Nifty  crossed the resistance level of 5,600 briefly but is currently trading at 5,593 up 42 points.
__________________

(Updated at 0938)

The markets have opened in the positive with the Sensex gaining 60 points at 18,554 and the Nifty has added 15 points to start at 5,565. However, the broader markets had a slow start with the smallcap index opening at  8,248, up 0.4% and the midcap index starting at 6,918 with a 0.6%. The BSE benchmark index, Sensexwhich is up 0.7%  is outperforming the broader markets in the opening trades.

All the sectoral indices started in the green. Realty and Consumer Durables, up 1% each are indices leading the gains closely followed by Capital Goods and Power. However, yesterday's top index gainer FMCG started flat.

Overnight the US markets closed flat after a volatile day of trading as investors were reluctant to make bets a day before a critical labor market report that could magnify fears the economy is slowing.The three major U.S. stock indices have been trending downward and investors worry about more losses if economic figures disappoint.The Dow Jones industrial average fell  0.34% to 12,248. The Standard & Poor's 500 Index dipped 0.12 % to 1,313 and the Nasdaq Composite  rose  0.15% to close at 2,773. Also, the dollar fell to a one-month low against a basket of currencies after ratings agency Moody's warned of a downgrade.

In the light of these developments, the Asian stocks bounced though the gains were modest. Japan's Nikkei index was down 0.3% with political uncertainty weighing on sentiment, though cheap valuations and options-related short covering may provide some support. The major gainers among the Asian indices are Shanghai Composite up 0.5% followed by Taiwan Weighted which added 0.2%.

The top gainers in the opening trades among the Sensex stocks are Reliance Communication which surged 7% followed by Reliance Infrastructure, L&T, Jaiprakash Associates, DLF, Mahindra & Mahindra and Maruti Suzuki which added between 1-4%

Only two scrips namely Tata Power and Hindustan Unilever losing 0.2-0.3% were the only losers in the Sensex stocks.

The market breadth is positive. Of the total 1475 stocks trade on the BSE, 1111 stocks have advanced while only 313 declined.