Sensex resumes high at 12,649.77 pts, up by 60 pts

Mumbai, Mar 8 (UNI) The BSE Sensex today resumed firm at 12,649.77 points with a modest gain of around 60 points from its last close of 12,579.75 points as firm trend continues into the third day across Asian markets coupled with heavy speculative demand, brokers said.

Banks, Auto and IT shares were in limelight on sustained good buying support from FIIs and mutual funds.

Later, the Bombay Stock Exchange (BSE) Sensitive Index (Sensex) was up 100 points, at 12,680. It had pared gains after surging as many as 161.27 points, to 12,741.02, at intra-morning trade.

Meanwhile, the Nifty index of National Stock Exchange (NSE) also opened high at 3,627.25 points. Later, it recorded a high at 3,675.95 and a low at 3,626.80 points during the mid-morning session.

Index heavyweight Reliance Industries (RIL) advanced 1.6 per cent to Rs 1,310.50 and IPCL surged 5.9 per cent to Rs 245.40. RIL announced after trading hours yesterday that its board will meet on March 10, 2007, to consider a proposal for merging IPCL with the company.

Bank shares edged up on bargain-buying after a recent steep fall.

ICICI Bank gained 2.9 per cent to Rs 851, HDFC Bank rose 1.5 per cent to Rs 930 and State Bank of India advanced 1.3 per cent to Rs 977.

IT shares edged up notwithstanding a fall in their ADRs yesterday. Infosys gained 0.7 per cent to Rs 2,106, and Satyam Computer rose 1.1 per cent to Rs 435.50.

Wipro gained 1.5 per cent to Rs 564, on reports that it is close to buying a US-based aerospace services company for about USD 90 million.

Cement pivotals were mixed. While ACC lost 2.5 per cent to Rs 793 and Grasim shed 0.8 per cent to Rs 2,087, Gujarat Ambuja Cements gained three per cent to Rs 107.50. Cement scrips had declined on Wednesday, when the government hinted at a ban on cement exports.

Hindustan Zinc rose nearly one per cent to Rs 585.50, even as it cut prices. Hindustan Zinc said yesterday it had cut zinc prices by 4.8 per cent to Rs 1,68,000 a tonne. The company said it had also reduced lead prices by three per cent to Rs 94,700 a tonne.

Indus Fila was trading at Rs 130.50 on NSE. The stock debuted at Rs 158.90, a discount over the IPO price of Rs 170. A strong 10.88 lakh shares changed hands in the counter on BSE during the morning session.

Asian markets were hovering in the green today, extending their recovery from a recent steep fall triggered by steepling losses in Chinese stocks and jitters about health of the US economy. Key benchmark indices in Hong Kong, China, Singapore, South Korea, Japan and Taiwan were up between 0.59 and 1.3 per cent, brokers said.

UNI