Sensex opens firm at 13,684 pts

Mumbai, Feb 26 (UNI) The Bombay Stock Exchange (BSE) sensitive index (Sensex) today resumed on a firm note of 13,684.95 points compared with the previous day's close of 13,632.53 points on expectations of liberal Union Railway and General Budgets, along with fresh bull support, by Foreign Insitutional Investors (FIIs) and Mutual funds, brokers said.

A bout of early volatility gripped the bourses and the Sensex slipped into the red soon after a firm opening. However, the benchmark index again recovered from the lower level to move into the green.

The Sensex was up 41 points at 13,673 and surged 90.87 points in opening trade to 13,723.40. But it soon reached a low of 13,533.81 in mid-morning session, falling 98.72 points, for the day. The benchmark index later came off the lower level.

The brokers hoped a cut in railway fare and less tariff levy on goods items in the Railway budget, which will be presented in Parliament this noon.

Similarly, the General budget is expected to give boost to economy and rein in the rising inflation.

Banking, cement and auto pivotals nudged higher. RIL slipped after the company's board approved a large issue of equity warrants to promoters.

Reliance Industries Ltd dropped 0.6 per cent to Rs 1403.15. On Saturday, RIL unveiled a plan for an integrated cracker and petrochemicals complex with a total capacity of two million metric tonnes per annum in the special economic zone (SEZ) at Jamnagar. Tata Steel hiked 2 per cent to Rs 469, extending its recent recovery triggered by firm global steel prices. As per market talks, steel makers may raise prices by Rs 1000 per tonne after the budget.

Battered cement shares edged higher on bargain-hunting, after a steep fall. Grasim rose 2 per cent to Rs 2319, Gujarat Ambuja Cements gained 1.7 per cent to Rs 125, and ACC rose 1.3 per cent to Rs 928.

Bank shares recovered. ICICI Bank gained 1.3 per cent to Rs 920.

ICICI Bank on Friday said it had raised lending and deposit rates for new retail customers by 50 basis points to help maintain its net interest margins. There is no change in lending rates for corporates, and the new rates will be applicable only to new customers. The rate hike will help it maintain the net interest margin, which was 2.6 per cent for the December 2006 quarter.

State Bank of India (SBI) gained 1.8 per cent to Rs 1078 and HDFC Bank gained 1 per cent to Rs 967.

Auto shares too recovered on bargain-hunting after a recent steep fall. Car major Maruti Udyog gained 1.4% to Rs 876, and Tata Motors gained 1.2 per cent to Rs 825.

Asian markets were mixed today. The key benchmark indices in Japan, Singapore and Taiwan were up between 0.02 and 1.2 per cent.

The key benchmark indices in Hong Kong and Singapore were down between 0.2 and 0.9 per cent, brokers added.

UNI