Markets witness firm trades

The Indian markets opened on a firm note tracking positive global cues. The BSE Sensex is at 16,620, up 168 points and the Nifty is at 5,003, up 47 points.

In the broader markets, the smallcap and the midcap indices opened up 1 percent each, almost in line with the benchmark indices.

Overnight, US stocks jumped to their highest since July on Wednesday with the Dow Jones industrial average rising 96.88 points, or 0.78 per cent, to close at 12,578.95. The Standard & Poor's 500 Index added 14.37 points, or 1.11 per cent, to 1,308.04.

Asian shares rose to a two-month high and the euro firmed on Thursday after news that the International Monetary Fund was seeking to boost its resources to tackle the euro zone debt crisis. The MSCI's broadest index of Asia Pacific shares outside Japan inched up 0.5 per cent to a two-month high, while Japan's Nikkei average rose one per cent.

Back home, the Nifty is likely to face resistance around 4,975 – 4,986 levels, while it will seek support around 4,936 – 4,925, analysts say. At 730 am Indian Standard Time, the SGX Nifty was trading at 4985 levels, up 37 points.

Among the sectoral indices, Realty up 2 percent lead the gains closely followed by Bankex, Oil & Gas and Metal indices which added over 1.5 percent each.

The top gainers among the Sensex stocks in the opening trades were DLF, Tata Power, ICICI Bank, Maruti Suzuki, Hindalco and Tata Steel up 2 percent each.

Meanwhile, Bharti Airtel down 2 percent at Rs 338 is the only loser among the Sensex stocks. Yesterday income tax department had slapped a Rs 1,067-crore demand notice for alleged non-payment of TD dues in the past four financial years in connection with its operations abroad.

The market breadth is very strong with 972 stocks advancing as compared to 249 declines, on the BSE.