Markets gain on positive global cues, IIP data eyed

Sensex opens higher by 58 points

Markets have opened higher in trades today tracking positive global cues. The Sensex has opened higher by 58 points at 19,445 and the Nifty has advanced 16 points to open at 5,915 levels ahead of October industrial production data due later in the day today.

Asian shares rose as strong overnight performances in global equities and firmer economic sentiment in Germany buoyed sentiment, while the dollar was pressured ahead of the outcome of the US Federal Reserve's policy meeting later in the day.

MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.3% to a 16-month peak. The index has hit successive 16-month highs since December 5.

Hang Seng advanced 119 points or 0.5% to 22,443 levels, nikkei was up 45 points or 0.5% at 9,570, Taiwan Weighted advanced 49 points to 7,662 and the Seoul Composite was up 3 points at 1,967.

Overnight, the US markets ended higher on Tuesday, as investors grew optimistic that the Federal Reserve may announce more stimulus measures when it wraps up its final meeting of the year. Dow added 79 points while Nasdaq jumped over a per cent.

Back home, global rating agency S&P has warned that a downgrade is likely for India if its political climate worsens and pace of fiscal reforms slows down. For now they have retained India’s sovereign ratings at BBB-minus.

Meanwhile, Mahindra & Mahindra is the top gainer among the Sensex stocks, up 1.5% at Rs 942. Wipro, Bajaj Auto, TCS, Hero MotoCorp, Jindal Steel, Infosys, Cipla, Sun Pharma, Reliance Industries, Sterlite Industries, SBI and ITC have also opened higher by 0.5-1% each.

on the other hand, GAIL India, NTPC, Dr Reddy's Labs, HDFC Bank, ONGC and HUL are among the notable laggards.

Most of the sectoral indices have opened on a positive note. The BSE IT index is the top sectoral gainer, up 1.4% or 80 points at 5,634. Teck, auto, metal, FMCG, consumer durables, healthcare and oil & gas indices are also up 0.2-1% each. While, BSE power, PSU, realty and bankex indices have opened lower.

The broader markets have opened in-line with benchmark indices. The BSE mid-cap index is up 0.3% at 7,055 and the small-cap index has advanced 0.4% to 7,432 levels.

The overall breadth is positive as 771 stocks are advancing while 450 are declining.