Sensex up as IT index gains; inflation, TCS results key triggers

The Indian markets open slightly positive ahead of inflation data and the third quarter earnings of India's No.1 software services exporter TCS.

While the Sensex opened 70 points higher at 19726, the Nifty opened 10 points higher at 5962. The gains were primarily led by the IT index as all stocks in the IT are trading in the green. After Infosys announced better-than-expected results, the stock's upgrade by brokerages is boosting the IT index.

RIL, Infosys, Wipro, TCS, SBI, ICICI Bank, Tata Steel, Dr Reddys Lab, Bajaj Auto, Tata Motors, NTPC, Bharti Airtel, BHEL, HDFC are among gainers in Sensex and Nifty.

ONGC, Sun Pharma, Jindal Steel, M&M, Hero MotoCorp, Tata Motors, SBI, Hindalco Inds are among losers in Sensex and Nifty.

Inflation data and third quarter earning results from top bluechip companies such as TCS, Reliance Industries and Wipro will dictate the stock market

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trend this week onwards, say experts.

"After a positive surprise from Infosys, the street is perhaps expecting more blockbuster performance on the bourses even if companies just about manage to beat expectations, said brokerage IIFL in a report today.

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Bourses may see bouts of volatile sessions and some more selling pressure after the disappointing gone-by week.

Marketmen said that after a poor show by industrial growth numbers for November and exports data, released last week, all eyes are now on inflation figure. A 0.1 percent fall in the index of industrial production (IIP) data for November had triggered selling pressure in markets on Friday.

December's inflation data today, meanwhile, will be a key indicator of the market trend ahead of RBI's monetary policy review on January 29, experts said.

Last week, the BSE benchmark Sensex fell by over 120 points to end at 19,663.64.

Investors will closely watch the current corporate result season. Among majors this week, TCS will announces Q3 results on Monday, Bajaj Auto on Wednesday, Hero MotoCorp and HCL Tech on Thursday, Reliance Industries, Wipro, HDFC Bank and ITC on Friday.

"Volatility is likely to continue and market may also witness profit-booking on rallies. The level of 6,050-6,100 is a strong resistance zone as Nifty has seen steep fall from these levels in the past," said said Rakesh Goyal, Senior Vice

President, Bonanza Portfolio.

Besides, experts said, investors will look for some hike in fuel prices during the week.

Top secretaries of the finance ministry have been asserting that the fiscal deficit will be contained at 5.3% of the GDP, which is the revised Budget estimate for 2012-13.

Telecom stocks will be in action as the government has reportedly asked telecom operators to pay the first instalment of Rs 8,115.68 crore of one-time spectrum fee by January 15. In November, the government decided that the operators should pay for holding spectrum above 6.2 MHz retrospectively, from July 2008 to January 1, 2013.

Meanwhile the yen plumbed a 2-1/2 year low against the dollar as Japan's central bank faced relentless political pressure to deliver bold stimulus, while Asian stocks got off to subdued start with Tokyo closed for a public holiday.

With inputs from PTI