Sensex opens high following global recovery

Mumbai, June 1: Indian markets today opened on a positive note driven by recovery in the global markets following increase in the prices of US stocks.

Sensex today opened at 10472.46 points as compared to the previous close of 10398.61.

At 10:20 hrs, the sensex was up 108 points at 10,506 and touched a high of 10597.23.

However, around 12:00 hrs, the markets turned volatile and declined by 3 points to 10391.60, and further gained to reach 10417.56.

The IT and metal stocks climbed in the opening move today.

However all the indices, except metal, were trading in red between 0.5 to 1 per cent mark around 12:15 hrs today.

Auto major Hero Honda and Maruti Udyog moved up after they reported sales for May 2006.

Dr Reddy's Lab gained after it announced a liberal 1:1 bonus on Wednesday.

Securities transaction tax (STT) proposed in Union Budget 2006-07 becomes applicable from today. STT on delivery-based trade has been raised from 0.1 per cent of the value of the transaction to 0.125 per cent on both buy and sale sides. STT for day traders has been raised to 0.025 per cent from 0.02 per cent. This is applicable only at the point of sale and it is not applicable on purchases. STT on F&O trades has been raised to 0.017 per cent from 0.0133 per cent, applicable on sales and not applicable on purchases.

IT bellwether Infosys rose 1.7 per cent to Rs 2958.50, after its ADR rose 1.2 per cent on Wednesday to USD 70.60. Wipro rose 2.7 per cent to Rs 462, Satyam Computer gained 1.4 per cent to Rs 701 and TCS rose 1.3 per cent to Rs 1,805.

Car major Maruti Udyog gained 2 per cent to Rs 750. Hero Honda gained 2 per cent to Rs 787.

Bhel gained 1.4 per cent to Rs 1,930. Bhel has reported a net profit of Rs 867.95 crore for Q4 March 2006.

UNI