Chennai, Jan 2 (IANS): Indian bourses welcomed the New Year 2023 on a high note, said Motilal Oswal Financial Services on Monday.

The absence of global cues, strong macros and expectations of healthy corporate earnings provided the support to domestic equites, said Siddhartha Khemka, its Head - Retail Research.

Nifty opened higher and remained in positive territory throughout the day to close with gains of 92 points at 18,197 levels. Majority sectors ended in green.

"Going forward, we expect market to remain steady with a positive bias ahead of the December quarterly results and run up to the crucial Union Budget in February,: Khemka said.

"This should drive sector specific action in the market. Metals are likely to continue its northward movement as it benefits from the exports duty hike in China along with fall in the US dollar index - which is down to 7 months' low at 103," he said.

Some stock specific action would be also seen in auto sector stocks after it reported decent December sales numbers. Oil producing companies would be focus as Brent crude prices surged to one month high, Khemka said.

"The uncertainty of the impact of recession in 2023 lingers. Some are relying on central banks pivoting to interest rate cuts, and the resolution of the Russia-Ukraine conflict while others are on the lookout for risks that may throw markets back into turmoil," said Mitul Shah - Head of Research, Reliance Securities.

Central banks across the globe are warning about a prolonged inflation fight while Russia-Ukraine war and Covid cases in China threatening to keep energy and raw material prices high.

Profitability expected to improve in 3QFY23 after earnings in 2QFY23 witnessed margin pressure. The markets are likely to remain volatile for the next couple of weeks, Shah added.