Markets open higher; Nifty reclaims 5000

Commentary

oi-Sneha

By Sneha B K

Published: Thursday, June 7, 2012, 10:03 [IST]

Indian indices rose on Thursday tracking positive global cues and firm Asian markets. Markets rose across the board on speculation of further monetary easing by the Federal Reserve and the European Central bank, as the weakening of global economy continues.

At 9.50 am IST, the Sensex was trading at 16,565 points, higher by111 points and the Nifty was at 5,022 points, up 25 points.

The ECB said that it is ready to undertake further policy easing as the Euro area outlook darkens, while Federal Reserve Vice Chairman said that the US economy may need further monetary stimulus to bolster growth, which rekindled the hope in market.

On Wednesday, stocks soared in Dalal street on hopes of a stimulus by the European Central Bank and a subsequent rally in European indices. Hopes of a repo rates cuts by the Reserve Bank of India and the advent of monsoons also bought about good cheer for the markets.

The gainers in morning trade were Sterlite Industries, Tata Power, Tata Steel, and Sesa Goa. Stocks that failed to lure investors in early trade were TCS, Bank of Baroda, Ambuja Cements and Kotak Mahindra.

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