Sensex hovers near 21,000, banking stocks weigh

The BSE Sensex regained the 21,000 level today after a flat opening, with oil & gas and infra stocks leading the gains.

Indian stocks markets had opened flat today, tracking soft global markets as investors eyed US jobs data due today.

The Sensex was up 46 points at 21,004 while Nifty added 16 points at 6,257. Market analyst Rajat Bose said profit-taking could take place at higher levels today.

Rakesh Arora, MD & Head of Research of Macquarie Capital Securities (India), said state election results which are due on Sunday are crucial for the current rally to continue. The Sensex had gained 1.2 per cent yesterday after exit polls predicted a BJP win in four states.

The improving fundamentals of the Indian economy is helping the "re-rating of Indian markets", Mr Arora said, adding that the markets could test new highs next year.

Banking stocks were under some pressure on profit-taking after yesterday's sharp gains. The Bank Nifty was off 0.3 per cent after rising nearly 4.5 per cent on Thursday.

Asian markets were steady on Friday as Japanese shares recouped early losses, though investors were cautious ahead of jobs data that could make or break the case for an imminent scaling back in US stimulus.

Defying a soft finish on Wall Street, Tokyo's Nikkei edged up 0.2 per cent in morning trading, recouping a little of the 3.6 percent loss suffered in the previous two sessions. (With Reuters inputs)