Nifty opens above 5,700 on growth recovery optimism

Markets opened on a positive note this Wednesday with 50-share Nifty index gaining above key resistance level of 5,700 on hopes of growth recovery in Asia’s third-biggest economy after Reliance Industries and HCL Technologies reported upbeat fourth quarterly performance.

Foreign institutional investors were net buyers of Rs 5.92 billion worth of local stock on Tuesday, provisional data from stock exchanges showed.

At 9:15AM, the Bombay Stock Exchange's 30-share index Sensex gained 28.52 points at 18,773.45 while the National Stock Exchange's 50-share Nifty rose 19.70 points at 5,708.65.

Global risk appetite was firm as new-home construction in the U.S. jumped more than forecast, the International Monetary Fund raised its forecast for Japanese growth and the yen weakened

Asian markets traded mixed with China’s Shanghai Composite Index falling 0.5% to 2,184, Hong Kong’s Hang Seng declined 0.1 % to 21,654, Singapore’s Straits Times rose 0.36% to 3,299 while Japan’s Nikkei was up 1% to 13,353.

Back home, the key sectoral indices such as IT, capital goods, bankex, auto gained while oil & gas and consumer durables declined on BSE.

HCL Technologies Ltd, India's fourth-biggest software services provider, beat analysts' estimates with a 73% rise in quarterly profit after winning orders and keeping a lid on hiring. The stock rose 5% in the opening trades.

Meanwhile, results of Reliance Industries Ltd, owner of world’s biggest refining complex in Gujarat, exceeded market expectations by reporting a 32 per cent jump in net profit for the quarter ended March 2013, compared with the year-ago period, helped by an increase in refining margin. The stock opened down 0.8% on back of profit-booking.

The broader markets gained with mid-caps and small-caps adding 0.2-0.3% on BSE.

The market breadth was positive. Out of 497 stocks traded, 375 stocks gained compared to 110 declined on BSE.