Meanwhile, US markets succumbed to losses upon Tuesday but closed well above the day's lowest levels. The united states markets extended last week's losses as uncertainty over Europe's wellness resurfaced. The Dow Jones industrial average closed at 11, 139, lower 101 points, while the S&P 500 lost 9 points in order to close at 1, 165. The Nasdaq composite shed 6 factors at 2, 474.
The Asian markets are trading in the positive zone today with the Nikkei up 1. 4% at 8, 714. Seoul Amalgamated has surged 2. 5% to 1, 810. Taiwan Weighted, Suspend Seng and Shanghai Composite have all added around 0. 5% every.
On Tuesday, the Foreign Institutional Investors were net buyers of Rs 432 crore in cash and also the Domestic Institutional Investors were net sellers of Rs 415 crore.
Within the derivatives segment, FIIs were net buyers of 602 crore. These were net sellers of 1, 078 crore in the index futures as well as buyers of Rs 1, 173 crore in index options. Additionally they bought shares worth Rs 507 crore in the stock futures and Rs 44 lakh in investment.
The markets are likely to further react to 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.
"If the Nifty sustains above the 5080 level for handful of hours, we may see the index moving towards 5130-5140 amounts. Crucial resistance is seen at 5240 levels, short term change can only be set if Nifty closes above this degree. On the downside, now 5000 acts as psychological support beneath which it seeks support at 4950-4930 levels, " Ashish Chaturmohta, IIFL Personal Wealth.
NTPC, Tata Power would be in the limelight these days. DLF would also be watched closely as the realty major is likely to move 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.
IT stocks listed on the Nasdaq underperformed because from the prevalent weakness in the the US and European markets. Indian IT ADRs were the very best losers as Patni Computers, Genpack and Infosys were down 1-4% every. Tata Motors and HDFC bank were among the gainers, upward 2% and 1. 2%, respectively.