Sensex opens above 28,000; Nifty above 8,500

Markets have extended gains and have commenced firm today tracking positive global cues. At 9.30 AM, the Sensex is trading higher by 74 points at 28,050 and the Nifty has gained 19 points at 8,511.

On the sectoral front, BSE Metal index is the top gainer followed by Oil & Gas, Healthcare and Consumer Durables indices trading higher up to 1%. However, BSE FMCG, Bankex indices lost ground and are down up to 0.5%

"Truncated week promises to be full of action as traders and investors will shift their focus on the February fiscal deficit and the fourth quarter current account deficit data which is scheduled to be released on Tuesday. Uncertainty over the geo-political tensions and global cues would continue to drive markets going ahead,” said Amar Ambani, head of research at IIFL in a note.

Technical chartists sugegst that 8,500 – 8,550 is likely to act as a strong resistance for the Nifty. "Going forward, we may either witness some consolidation or a slide back towards 8,400 – 8,350 levels. We advise short term traders not to get too much excited in this technical bounce and try to stay light on positions," said analysts at Angel Broking in a morning note.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 240.34 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 651.67 crore yesterday, as per provisional data.

GLOBAL MARKETS

Asian stocks rose across the board on Tuesday after a rally on Wall Street and steps by China to shore up its economy boosted risk appetite, while Greek debt worries again haunted the sagging euro.

Tracking overnight gains in US stocks, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7%.

Japan's Nikkei added 0.3% and Australian shares rose 1.2%. Bourses in South Korea, Malaysia and Indonesia posted sizeable gains as well.

The Shanghai Composite Index followed up Monday's rally, rising to a fresh seven-year high on hopes for more infrastructure spending and monetary easing.

KEY STOCKS

On the sectoral front, BSE Metal index is the top gainer followed by Oil & Gas, Healthcare and Consumer Durables indices trading higher up to 1%.

Index heavyweights RIL and Infosys are trading higher up to 2% on brokergae upgrade.

The Shanghai Composite Index followed up Monday's rally, rising to a fresh seven-year high on hopes for more infrastructure spending and monetary easing. Tracking the news, metal shares are gaining in today’s trade. Sesa Sterlite, Hindalco, Tata Steel are higher up to 1.5%.

Leading private sector lenders ICICI Bank and HDFC Bank have cut rates by up to 0.25 per cent on high value fixed deposit on select maturities, a move that could be a precursor to lower lending rates. The stocks are trading lower up to 0.2%

Energy major ONGC  has driven a hard bargain to renew its insurance and re-insurance covers, at USD 20 million -- a discount of 35 per cent -- for its offshore assets valued at USD 34 billion from state-run United India Insurance and two global re-insurers. The stock is down 0.4%.

According to reports, GVK Power & Infrastructure is likely to file a draft prospectus for an up to Rs 1,500-crore initial public offer (IPO) of its airport unit soon. The stock is up 20% in morning trade.

State Bank of India, the country's largest lender, said on Tuesday it had received approval for divestment of its stake in private life insurer SBI Life Insurance Co by up to 10%.

Ever since the Union Budget levied hefty increase in excise duty on cigarettes, ITC’s stocks have been hampered affecting its core tobacco business and thus the company is thinking of separating its main business from other businesses. The stock is down nearly 1%.

Infosys rises 1.3 percent; CLSA raises target to 2,800 rupees from 2,500 rupees and reiterates high-conviction "buy" rating. The stock is up over 1%

In the broader market, BSE Midcap and Smallcap indices are outperforming the large counterparts and are trading higher between 0.4-1%.