Sensex on Mount 28K, Nifty trading firm; financial shares gain

The Sensex has opened higher by 82 points at 28,054 and the Nifty has gained 53 points at 8,575.

Markets have extended gains and have commenced firm today tracking positive global cues.

At 10:30 am, the Sensex has opened higher by 82 points at 28,054 and the Nifty has gained 53 points at 8,575.

“Markets rallied on account of all round buying witnessed in scrips across the sectors.”

“Financials, FMCG and Infrastructure shares were the major contributors of yesterday’s rally,” said Amar Ambani, head of research at IIFL in a note.

“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,” he adds.

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.

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