Stock markets opened on a promising note on the first trading day of 2013 with the BSE benchmark Sensex rising over 132 points in early trade on increased buying by funds as well as retail investors.

The 30-share index rose by 132.22 points, or 0.68 per cent, to trade higher at 19,558.93 points with all the sectoral indices led by realty and metal, trading in positive zone with gains up to 1.23 per cent.

The Sensex had shed 18.13 points in the previous session in two-way movements.
The broad-based National Stock Exchange index Nifty rose by 37.90 points, or 0.64 per cent, to 5,943.00.

Brokers said sentiments buoyed largely in tandem with overnight gains on the US markets on fresh hopes for a last-minute deal to avoid the economy-crunching fiscal cliff.

Besides, expectations of rate cut by the RBI later this month also triggered buying by participants, they said.

The US Dow Jones Industrial Average ended 1.28 per cent higher in yesterday’s trade, while most of Asian markets are closed today for a public holiday.

Wall Street rallied on Monday and global equities finished their best year in the last three as U.S. Lawmakers closed in on a deal to avoid a budget crisis that many fear could cripple the world economy in 2013.

U.S. stocks closed out 2012 with their strongest day in more than a month, putting the S&P 500 up 13.4 percent for the year, as lawmakers in Washington closed in on a resolution to the “fiscal cliff” negotiations.

The White House and congressional lawmakers have reached a deal to avoid the “fiscal cliff” that would delay harsh spending cuts by two months, Obama administration officials said on Monday.

India’s current account deficit widened to a record high of 5.4 percent of GDP in the September quarter as export growth slowed more sharply than imports, with a similar gap expected in the December quarter likely to prolong weakness in the rupee.

India’s infrastructure sector output grew 1.8 percent in November from a year earlier, a sharp fall from the upwardly revised annual growth of 6.6 percent in the previous month, government data showed on Monday.

Government’s ambitious direct benefits transfer (DBT) scheme will be rolled out in 20 districts on January 1 as against the earlier plan of covering 51 districts.

Retail inflation for industrial workers moved up marginally to 9.55 percent in November on account of surge in the prices of food items, cooking gas, medicines and bus fares.

The government has allowed Indian companies to merge with firms overseas through the issue of Indian Depositary Receipts (IDRs) and the Reserve Bank of India has been asked to issue detailed guidelines on the process.