Markets open marginally higher; Nifty reclaims 8,000

Markets opened marginally higher on Tuesday with the benchmark Nifty reclaiming the 8,000 mark led by financials. However, traders are likely to remain cautious ahead of the two-day FOMC meet which begins today.

At 9:35AM, the 30-share Sensex was up 99 points at 26,852 and the 50-share Nifty was up 25 points at 8,017.

On Monday, FIIs were net buyers to the tune of around Rs 49.14 crore

The Indian rupee was trading lower at Rs 61.37 compared to the previous day's close of Rs 61.30.

Asian markets are trading mixed with Japanese stocks remaining subdued ahead of the of US Federal Reserve's two day meeting and persisting decline in global crude price despite upbeat economic data released before the opening of market. Japanese retail sales in September rose 2.3% from a year earlier, government data showed, suggesting consumer spending is gradually picking up. NIkkei has declined around 0.8% and Straits Times is down around 0.5% while on the other hand Hang Seng has gained around 0.6% and Shanghai Composite is up around 1.2%.

U.S. stocks ended near flat on Monday as energy shares fell with another decline in oil prices while investors remain optimist about Federal Reserve's meeting outcome expecting it to maintain dovish stance on interest rates and a largely accommodative policy over the medium term. The Dow Jones industrial average rose 0.07% to 16,818, the S&P 500 lost 0.15% to 1,962 and the Nasdaq Composite was flat at 4,486.

BSE Bankex, Capital Goods, Auto and Realty were the top sectoral gainers while FMCG, Oil and Gas indices were marginal losers.

Financials were among the top Sensex gainers led by ICICI Bank up 1.6% followed by HDFC, SBI and Axis Bank.

L&T extended gains and was up 1% after a government panel on Saturday cleared defence projects worth Rs 50,000 crore.

Tata Motors rebounded from its correction in the previous session and was up 0.7%.

FMCG major HUL extended losses on worries over volume growth and after several brokerages reduce their target price post the second quarter earnings. Net profit was up 8% at Rs 988 crore for the quarter ended September compared to Rs 914 crore in the same quarter last year. Total income was higher at Rs 7,639 crore compared with Rs 6,893 crore in the same quarter last year. Volume growth was lower at 5% compared to 6% in the previous quarter.

Index heavyweights Reliance Industries and Infosys were among the top Sensex losers.

Coal India was down 1% on reports that The Competition Commission of India (CCI ) has asked Coal India to desist from indulging in anti-competitive practices by abusing its dominant position. The CCI passed this judgment in two different cases relating to the e-auction scheme and fuel supply agreements which were filed last year.

In the broader market, the BSE Mid-cap and Small-cap index was up 0.5%.

Market breadth was positive with 935 gainers and 441 losers on the BSE.