Markets open positive on global cues

The Indian markets opened on a positive note on the back of positive sentiments from the global markets. The Sensex and Nifty are both trading up with 0.72% and 0.63% gains respectively. The US Federal Reserve kept the interest rate unchanged to boost the US economy, but investors are sceptical of its sustainability. The positive closing of the European markets lifted investor sentiments. The talks between the European leaders and the creditors on the Greek debt will provide some vital cues to investors later in the day.

In the Asian markets, the Nikkei opened on a mixed note on the back of the weak US economic data, which dented the investors' sentiments across the markets. However, the Fed's stance to keep the interest rate unchanged provided some relief to investors.

Yesterday, the European markets also closed on a positive note on the hopes that talks between the Euro leaders and the creditors on the Greek debt will help the economy to emerge from the crisis. Also, the Federal Reserve's commitment to an easy monetary policy boosted market sentiment.

Back home, from the BSE sectoral indices, Metals, Consumer Durables and Teck are leading with gains of 2.29%, 1.93% and 1.84% respectively. All the indices are trading with gains between 0.48%-1.62%, except for Bankex and FMCG, which are down by 0.48% and 0.03% respectively.

Among the Sensex shares, Bharti Airtel, Cipla, Hindalco, Infosys, Sterlite Industries, Sun Pharma, Tata Steel and TCS are all leading with gains between 2%-4.30%. Other gainers include Coal India, DLF, M&M, NTPC and RIL are up with marginal gains between 0.82%-1.90%. Among the losers were BHEL, HDFC, ICICI Bank, Maruti Suzuki and SBI, all down between 0.13%-1.43%.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1588 shares rose and 554 shares fell. 81shares remained unchanged.

We expect the markets to remain positive for the day. The European markets will also provide some vital cues on the desired direction of the market trend in the late afternoon session.