Sensex Opens in Positive Zone, Nifty Above 8,800

Overnight, the US markets ended on a strong note. The S&P 500 ended above 2,100 at another record high on Tuesday as optimism grew that a debt deal would be reached with Greece and as bond prices sold off.

 

In a possible sign of progress for Greece, a source told Reuters the country intends to ask for an extension of a loan agreement Wednesday. The report follows a collapse of deal negotiations on Monday, which led to European Union finance ministers pressuring the country to remain in an international financial rescue program.

 

The Dow Jones industrial average rose 28.23 points, or 0.16 percent, to 18,047.58, the S&P 500 gained 3.35 points, or 0.16 percent, to 2,100.34, a record high. The Nasdaq Composite added 5.43 points, or 0.11 percent, to 4,899.27.

 

Tracking gains in the US markets, the Asian markets were also trading higher. Nikkei and Shanghai Composite were up around 1 per cent each.

 

Back home, the broader markets were mostly in line with the benchmark indices. The BSE mid-cap and small-cap indices gained around 0.5 per cent each.

 

In the opening deals, buying was visible in the FMCG, capital goods, power and realty stocks. At the same time, oil & gas, metal and auto stocks were facing a mild selling pressure.

 

From the Nifty basket, ITC was the top gainer. The stock advanced nearly 3 per cent to Rs 400. Punjab National Bank, Mahindra & Mahindra, HDFC, HUL, Larsen & Toubro and ICICI Bank were also trading higher by 1-2 per cent each. 

 

On the other hand, Hero MotoCorp was the top loser on the Nifty. The stock slipped 3.5 per cent to Rs 2,707 on reports that the promoters of the company would sell shares worth Rs 1,850 crore.

 

Sesa Sterlite, Zee Entertainment, Bharti Airtel, Tata Motors, Bajaj Auto and IndusInd Bank were also among the losers.

 

At 9:45 AM, the Sensex advanced 87 points to 29,223 and the 50-share Nifty jumped 22 points to 8,831.

 

(With inputs from Reuters)