The Indian benchmark indices rallied at opening even as US stocks dropped dragging the Asian markets down with it with investors weighing the near-certain prospect of an interest rate hike by the Federal Reserve.
Rising geopolitical tensions in Asia created uncertainity and further worsened investor sentiment after North Korea fired four ballistic missiles early today and a spat between China and South Korea over missile defence.
However, this did not see much effect on the Indian markets, which were moving closer towards their 52-week highs.
At 9.52 AM, the S&P BSE Sensex was ruling 29,023, surging 191 points while the Nifty50 was trading at 8,954 gaining 57 points.
"A strong support is seen in the zone of 8,850-8,800 on Nifty; whereas the immediate resistance level is at 8,993. We would reiterate that the trend is strong and hence, one should look to utilise intra-week dips to create fresh longs rather than getting worried about the overbought condition of the market," said an Angel Broking report.
Reliance was the top gainer on BSE, adding as much as 2.79 per cent to the bourses, followed by NTPC and State Bank of India.
IT stocks such as Infosys and TCS were the top losers and shed over 1 per cent each on the Sensex, while Bharti Airtel gained over 1 per cent and was leading the index in early morning trade.
Janet Yellen, in a speech on Friday, signaled that the Federal Reserve is set to raise interest rates this month if employment and other economic data hold up, adding that rates are likely to rise faster this year.
Reacting to this, US stocks dropped 0.4 percent followed by a beating in the Asian markets.
The dollar dipped 0.3 percent to 113.77 yen while the euro eased 0.1 percent to $1.0608.
World's second-largest economy, China has cut its growth target this year as it pushes through painful reforms to address a rapid build-up in debt, and erects a "firewall" against financial risks.
China aims to expand its economy by around 6.5 per cent.
Among the Asian markets, Shanghai Composite was up 0.37 per cent, Hang Seng Index was trading 87 points higher, while Japan's Nikkei was down 88 points.