MUMBAI: Indian markets opened with a gap-up and pared some of the losses made previous day. Realty, metals and IT led the upmove while FMCG remained subdued. Bounce back in global markets also helped boost sentiments. Some volatility may be expected later in the day as traders square off January F&O series.

“Expect some bounce back as markets are quite oversold in the short term. Long positions can be taken with yesterday’s low as SL. But lighten your commitments as the market moves up. Obama's statement that tax rebates given to companies that outsource need to be cut, might have some negative impact on software stocks. Tata Steel, Cairn, Cipla and Jindal Steel and Power are among the results lined up today,” said Anagram Stock Broking note.

National Stock Exchange’s Nifty was at 4903.55, up 50.45 points or 1.04 per cent and Bombay Stock Exchange’s Sensex was at 16462.24, up 172.42 points or 1.06 per cent.

BSE Midcap Index was up 1.55 per cent and BSE Smallcap Index moved 1.61 per cent higher.

“Indices are expected to open on a flat note in response to the flat global indices. Traders are advised to trade short if Nifty fails to sustain above 4900, else from 4920 levels with stop loss placed at 4965 for the targets of 4880/4850,” said Karvy Stock Broking note.

Amongst the sectoral indices, BSE Realty Index gained 2.61 per cent, BSE Metal Index advanced 2.19 per cent and BSE IT Index moved 1.71 per cent higher. BSE FMCG Index was down 0.23 per cent.

Suzlon Energy (3.28%), Unitech (3.11%), Hindalco Industries (3%), SAIL (2.85%) and Tata Steel (2.61%) were amongst the top Nifty gainers.

ITC (-1.04%), Hero Honda (-0.53%) and IDEA (-0.41%) were amongst the top losers.

Market breadth was positive on the BSE with 1245 advances and 350 declines.

Asian markets were in the positive terrain after the Federal Reserve left the interest rates unchanged. Nikkei 225 was up 1.31 per cent, Hang Seng gained 1.79 per cent and Strait Times was up 2.02 per cent.