Benchmark indices opened the day higher led by a solid rally across Asian markets after China late on Friday cut lending interest rates and also cut reserve ratio requirement of banks.
European and US markets rallied on Friday itself after the news broke, while Asian markets could not rally as they were closed. However, they opened today with string gains with the Japanese Nikkei up 1.21%, Jakarta Composite up 1% and the Shanghai Composite rallying 0.75% in early trade.
Nifty shares that were trading higher included the metals stocks on hopes that a cut in interest rates in China would boost prospects for the industry. Hindalco, Tata Steel and Vedanta were the major gainers in trade.
Shares of Eros International fell after Wells Fargo raised concerns of the company's listed US arm's revenues from UAE.
Asian Paints that reported numbers that were disappointing dropped in trade and was the biggest loser. HDFC was higher ahead of earnings to be declared later today.
Force Motors continued to rally after the company posted a 65.35 per cent rise in its net profit at Rs 42.48 crore. Inox Lesiure was also trading higher after the company reported a jump in its net profits. Mid cap shares also saw some traction with notable gainers being GPPL and Ramco cement.
Meanwhile, the rupee dropped marginally and was trading at 65 to the dollar.