Overnight, the US markets succumbed in order to losses on Tuesday but closed well above the day's cheapest levels. The US markets extended last week's losses as doubt over Europe's health resurfaced. The Dow Jones industrial average, the S&P 500 and also the Nasdaq composite closed down between 0. 3-1% each.
The Asian markets were trading within the positive zone this morning with the Nikkei, the Hang Seng and also the Shanghai Composite were trading higher by over 1% each.
Buying through the Foreign Institutional Investors has also gained some traction lately. These were net buyers of Rs 432 crore in cash, while the actual Domestic Institutional Investors were net sellers of Rs 415 crore.
Moving forward, the markets may take cues from the US President Barrack Obama's speech towards the Congress, due on Thursday, highlighting ways to boost hiring. Federal Reserve chairman Ben Bernanke is scheduled to discuss the nation's economic outlook on a single day, in Minnesota.
Back in India, Ashish Chaturmohta from IIFL Personal Wealth said, “If the Nifty sustains above the 5080 degree, the index may head towards 5130-5140 levels. Crucial resistance sometimes appears at 5240 levels. On the downside, 5s000 acts as mental support. ”
Realty and banking shares were leading the increases, up over 1% each.
Investors cashed in on Bank associated with Baroda, Union and State Bank of India, up 2% every. Among the frontline shares ICICI Bank, HDFC Bank and State Bank of India contributed 50 points about the Sensex.
From the realty space Parsvanath Developers was on organization ground, up 2. 7%, HDIL added 2. 6% and Peninsula Property was up 2. 5%.
From the broader markets, the midcap and also the smallcap indices were up 0. 6% each.
Top gainers about the Sensex were JP Associates, up over 4% on news that company may rope in cement business partner and it is in talks with Votorantim and Cemex for minority stake purchase. DLF advanced 2% after the realty major is planning to maneuver the Competition Appellate Tribunal by early next week to appeal from the Competition Commission of India’s (CCI) order imposing a Rs 630-crore penalty about the firm. Among the banking shares, the HDFC Bank also additional 2. 1%.
Prominent losers on the Sensex were Tata Engines, down 0. 7%, Infosys declined 0. 5% and Hindustan Unilever dropped 0. 3%.
Market breadth was positive, 1157 stocks advanced with regard to 318 stocks which declined.