Morning Be!!.......Indian stock indices have posted smart gains in early morning trade

Indian Markets

The frontline Indian stock indices have posted smart gains in early morning trade, as investors welcome better-than-expected fourth-quarter GDP growth in China and a successful debt sale in France. Besides, inflation back home has cooled off considerably amid increasing expectations of a reversal in the RBI's hawkish monetary policy stance sooner or later.

Auto, Consumer Durables, Realty, Bankex, Power, Oil and Gas, IT, PSU, FMCG indices are the gainers.

The momentum seems to be in favour of the bulls so far, with most constituents of the main indices flaring up and most sectoral indices on the BSE and NSE advancing. The market breadth is positive as well.

Banking, Auto, Metals, Realty, Capital Goods and Power indices on the BSE are up 1-2%. The remaining sectoral indices on the BSE have gained 0.5% to 1%.

News of the day

- GoM to discuss FDI in aviation today

- Dewan Housing approves acquisition of stake in 'unlisted NBFC'

- Coal India to invite fresh bids for Mozambique blocks

- NCC mulls Infra arm, bond issue to raise money - DNA

-Times group in race to buy Neo cricket, Neo Sports, also eyes TV9

US and European Markets

The US markets were closed on Monday in observance of the Martin Luther King Jr. Day holiday.

European stocks closed slightly higher Monday, shrugging off Standard & Poor's downgrade of nine eurozone governments. Britain's FTSE 100 gained 0.4%, the DAX in Germany gained 1.3% and France's CAC 40 added 0.9%.

Asian Markets

Barring Shanghai, which is trading marginally lower by 0.1%, all the other Asian indices are trading in the green with Hang Seng & Nikkei trading higher by 1.5% & 0.6% respectively. Strait Times & Kospi are trading higher by 0.6% & 1.3% respectively, while Taiwan is trading in the green by 0.7%. SGX Nifty is trading lower by 2 points.

Currencies

The Indian Rupee reversed all early losses on Monday to end higher stoked by US Dollar inflows and boosted by a rebound in the local share market.

Commodities

Among the metals, Aluminium, Copper & Zinc gained 0.5%, 0.6% & 0.5% respectively, while Nickel ended lower by 1.7%.

Outlook

Today, the Indian market could open on a flat note and inch up later during the day. With the markets ending higher yesterday, the underlying trend remains up. Immediate upside targets are at 4910. Crucial supports to watch on the downside are at 4840-4800. Among the sectoral indices, Banking & IT are looking good, while Oil & Gas is looking weak & could underperform.

Sources-hdfcsec, india infoline