After stumbling for eight days in a row, the Sensex opened 0.6 percent higher today at 18450 levels on positive global cues. World markets are upbeat on hopes that the fiscal cliff negotiations in Washington are progressing well especially after Obama met Congressional leaders on Friday.
"Our best guess as to the outcome is that, at the 11th (or 12th) hour, President Obama and Congress will agree to some type of compromise deal that includes a short extension of at least most of the Bush-era tax cuts, some sort of tax increase on upper-income households and a delay of most of the scheduled spending cuts," said BlackRock's Senior Advisor Bob Doll.
Dalal street on the other hand remained in consolidation mood on Monday as investors stayed on the sidelines awaiting political developments before making any move as the Winter Session of Parliament kicks off from Nov 22
Religare Mutual Fund expects this consolidation mode in the market to persist due to lack of catalysts for a significant up move in the stock markets. Expectations from the winter session of Parliament are low which is why the government must clear administrative reforms not needing parliamentary approval as soon as possible, it said in an interview to CNBC-TV 18.
The NSE Nifty was quoting at 5,611, up 39 points over the previous close. ICICI, HDFC, Tata Motors and TCS have helped markets post early gains in opening trade.
RIL, Wipro, TCS, Tata Power,ICICI Bank, Tata Steel, Coal India, ONGC, Maruti, HDFC Bank,BHEL,M&M, L&T,SBI, Dr Reddys Lab, HDFC, Tata Motors are among gainers in Sensex and Nifty.
Infosys, Sun Pharma, Bharti Airtel, NTPC are among losers in Sensex and Nifty.
Tata Motors shares are up 1.8 percent while HDFC is up 2 percent and is the top Nifty gainer.
Bharti Airtel is up around half a percent on reports that the company is planning to launch an IPO of Bharti Infratel by December 10. The company is planning to raise nearly Rs 5000 crore via 10 per cent stake sale, a report in ET Now said.
Meanwhile, the Reserve Bank of India (RBI) has notified a total ban on banks from advancing any loans to its customers for purchasing gold in any form, which includes primary gold, gold bullion, gold jewellery, gold coins, units of gold Exchange Traded Funds (ETF) and units of gold mutual funds.
C Rangarajan, chairman of Prime Minister's Economic Advisory Council, said on Monday that government will strive to rein in the fiscal deficit within the revised target of 5.3% of GDP for 2012
Globally, Moody's has downgraded France's sovereign rating to AA1 from triple-A citing on an uncertain fiscal outlook as a result of deteriorating economic prospects. Moody's said it is maintaining a negative outlook on the country due to structural challenges and a "sustained loss of competitiveness" in the country.