Markets open higher, metals shine

Markets edged higher in opening trades following firm global cues as expectations increased that Greece would avoid a default. The S&P CNX Nifty gained 30 points, at 5,575 and the benchmark Sensex added 105 points, at 18,598.

Asian markets were trading mostly higher in the morning session on improved investor sentiment. The European Union and International Monetary Fund approved 78 billion euros or $111.4 billion in additional austerity and accelerated asset sale to help Greece differ bail out. Resource related shares edged higher after commodity prices surged overnight. Japan's Nikkei Stock Average was up 1% led by exporter shares. Hong Kong's Hang Seng added 0.3%, but Shanghai Composite bucked trend and edged lower by 0.3%.

Also government's decision last week to raise prices of diesel and cooking gas has increased optimism among the investors that the government may go ahead with its pending reforms giving fillip to the markets. Kishor Ostwal, CMD from CNI Research said that if 5,500 will be maintained until expiry than markets may rise 10% in the next couple of months.

Rollovers on Nifty were in line with previous expiry. Emkay in the morning note said rollovers stood at 40.9% as against 37.2% seen two days before expiry in May. The marginal increase in rollover is largely on account of a decrease in base open interest said Emkay.
Among the sectoral pack metal shares were leading the gains following firm international prices. Among the prominent gainers were Welcorp, up 3.4%, Jindal Saw climbed 3% and Sesa Goa was up 1.5%.

BSE IT shares were trading higher; the index was up 1%. Infosys advanced 1.2%, TCS gained 0.9% and Patni Computers was up 0.7%.

Top gainers on the Sensex were Sterlite, up 2.1%, BHEL added 1.6% and Jindal Steel was up 1.4%. Top losers Bajaj Auto slipped 1.8%, L&T declined 0.2% and ONGC was down 0.2%.

From the broader markets midcap index added 0.5% and smallcap index gained 0.7%.

In the broader market 988 stocks advanced for 362 stocks which declined.