Sensex opens firm at 13,703.41 points

Mumbai, Feb 27 (UNI) The BSE Sensex today opened positive at 13,703.41 points as compared to the previous day's close of 13,649.52 points on fresh speculative demand from Foreign Insititutional Investors (FIIs) and some mutual funds, brokers said.

Volatility dogged the market for the second day in a row, weakening it after a firm start.

The Sensex was down by 53 points at 13,596. It came off the lower level after plunging as many as 110.85 points to 13,538.67.

Earlier, the market had started firm with the Sensex up 53.89 points, to 13,703.41.

Banking, two-wheeler and telecom shares edged lower. Cement shares extended gains for the second day in a row.

A report on the Indian economy, the economic survey, will be tabled in Parliament by noon today.

Cement shares extended gains. While Grasim rose 2 per cent to Rs 2385, ACC gained 0.3 per cent to Rs 949 and Gujarat Ambuja Cements rose 0.9 per cent to Rs 128.70. Freight rate on limestone, a key input in cement, was cut by 6 per cent in yesterday's rail budget.

However, given that cement units are located in proximity to limestone deposits, it may not have any significant savings of transport costs for cement firms, analysts reckon.

State-run NTPC rose 0.8 per cent to Rs 1616, after it submitted a non-binding bid to buy 682.5 Megawatt Sidi Krir power project in Egypt through 100 per cent acquisition of Globeleq Maghreb.

Bank shares edged lower. HDFC Bank lost 1.5 per cent to Rs 937 and ICICI Bank shed 1.4 per cent to Rs 892.

Two-wheeler firms edged lower. Bajaj Auto shed 1.3 per cent to Rs 2775 and Hero Honda lost 1.7 per cent to Rs 694.

Bharti Airtel shed 0.7 per cent to Rs 726.70, and Reliance Communications shed 0.3 per cent to Rs 424.35.

Firm oil prices weighed on Asian equities on Tuesday. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were down between 0.07 and 1.7 per cent, brokers added.

UNI