Morning Bell!!!!!............Sensex opens 1% higher on strong global cues

SENSEX 17365.92   173.10 (1.01%)                                           NIFTY 5219.80   50.95 (0.99%

Indian Markets

The key Indian equity benchmarks have posted healthy gains in early morning trade, tracking firm global cues, as investors worldwide welcome leadership changes in Greece and Italy amid hope that they will be able to contain the damage from the eurozone debt crisis. Asian markets also gained after Japan's economy returned to growth in the third quarter (July to September) following three straight quarters of decline.

Markets ended lower on Friday. A recovery from the day?s low helped to curb the losses. While the BSE Sensex finally closed 169 pts or 1% lower at 17,193, the Nifty lost 52 pts or 1% to close at 5,169.

US Markets

U.S. stocks rallied on Friday, advancing for a second straight session, as leaders in Italy and Greece took measures to curb the region's ongoing debt crisis. Dow Jones climbed 260 points, or 2.2%, S&P 500 added 24 points, or 2%, and Nasdaq rose 54 points, or 2%. The day's gains helped the Dow finish up 1.4% and S&P 500 close up 0.9% for the week.

The Indian ADRS ended mixed MTNL losing the most 4.2% while Satyam gained the most 3.6%. Tata Communications fell by 2% while HDFC Bank ended lower by 1.3%. Wipro and Dr Reddys ended higher by 0.7% and 0.55 respectively. ICICI Bank rose by 0.2% while Tata Motors fell by 0.2%. Infosys ended marginally in the red.

Asian Markets

Today, all the Asian indices are trading in the green with Hang Seng trading higher by 2.4% while Kospi and Taiwan are up by 2.1% each. Shanghai and Strait Times are up 1.5% each while Nikkei is up 1.2%.

Commodities

Among the metals, Aluminium and Copper rose by 0.1% while Zinc fell by 0.5%.Oil for December delivery added $1.21 to settle at $98.99 a barrel. Gold futures for December delivery rose $25.20 to settle at $1,784.80 an ounce.

Outlook for Today

Today, we expect the Indian Markets to open in the green on the back of positive global cues. Support on Nifty is at 5,142 while resistance is at 5,317. Among the sectors, Auto and Oil & Gas stocks could outperform while Metal and Realty stocks look weak.

Source- HDFCSEC.