Sensex opens firm at 12,573.01 pts

By Staff
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Google Oneindia News

Mumbai, Mar 6 (UNI) The BSE Sensex today resumed positive at 12,573.01 points from its last close of 12, 415.04 points on fresh speculative demand from FIIs and mutual funds, brokers said.

The market surged in opening trade, tracking a recovery in Asian markets. IT, Telecom and Cement shares were leading the early surge.

IT shares had recovered after the Rupee hit its lowest level of calendar 2007 yesterday.

Later, the Bombay Stock Exchange (BSE) Sensitive Index (Sensex) was up 301 points, at 12,716. It had also again hit a high of 12, 719.81 during the mid-morning session.

Meanwhile, the S&P CNX Nifty index of NSE also resumed high at 3,577.15 points. Later, it recorded a high at 3,655.55 points and a low at 3,576.65 points during the intra-day trade. The current index is quoted high again at 3,655.45 points with a massive gain of around 80 points from its last close of 3,576.50 points.

ICICI Bank gained 4 per cent to Rs 854.50. ICICI Bank said on Saturday (March 2, 2007) it plans to transfer investments in four subsidiaries to a new wholly-owned unit, ICICI Holdings, and may list the unit next year.

IT shares recovered under the reckoning that a fall in the Rupee will ease pressure on their profit-margins after the Indian currency's recent surge. Satyam Computer gained 3 per cent to Rs 426.80, Infosys rose 2.4 per cent to Rs 2,055, and Wipro gained 2.2 per cent to Rs 549.

IT firms derive a lion's share of their revenue in dollar terms.

Battered cement shares edged higher. Gujarat Ambuja Cements gained 1.9 per cent to Rs 114, ACC rose 1.8 per cent to Rs 828.50 and Grasim rose 1.3 per cent to Rs 2,130. Cement manufacturers have told the government they are unable to lower prices due to a differential duty structure slapped on them in last week's Union Budget 2007-08.

The decision to not roll-back the recent price hike came following a meeting of cement producers and industry ministry officials yesterday.

Telecom stocks edged up on bargain-hunting. While Reliance Communications gained 3 per cent to Rs 411, Bharti Airtel rose 2 per cent to Rs 750.

Index heavyweight Reliance Industries (RIL) added 1.6 per cent to Rs 1,280, again on bargain-hunting, after a recent sharp fall in the counter.

Punjab Tractors surged 3.54 per cent to Rs 328.50. As per reports, final bids have been submitted for 43.5 per cent stake in the company, and the winner is expected to be announced shortly.

Asia-Pacific markets recovered on Tuesday. Key benchmark indices in Hong Kong, Japan, South Korea, Australia, China, Singapore and Taiwan were up between 0.49 and 1.49 per cent.

US stocks ended lower on Monday, undermined by rising concerns about defaults in the US subprime mortgage market.

The Dow Jones industrial average fell 63.69 points, or 0.53 per cent, to 12,050.41. The Standard&Poor's 500 Index declined 13.05 points, or 0.94 per cent, to 1,374.12. The NASDAQ Composite Index tumbled 27.32 points, or 1.15 per cent, to 2,340.68.

A sell-off was witnessed in global equities over the past few days. Analysts attribute the sell-off to worries pertaining to the US economy, volatile markets in China, and more frequently, the unwinding of yen carry trades, or when investors borrow the yen to take advantage of low interest rates in Japan, and then invest in higher-yielding assets. Global markets will closely eye this week's US economic data such as reports on employment, productivity, unit labour costs and factory orders, brokers added.

UNI

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