Sensex opens firm at 12,570, up by 27 pts

Mumbai, Mar 16: The BSE 30 scrips of sensitive index today resumed positive at 12,570.52 with a modest gain around by 27 points from it last close of 12,543.85 on fresh bull support from FIIs and mutual funds, brokers said.

Later, the select scrips came off the higher level after an early surge. Asian markets had shrugged off their initial weakness. US markets inched up. Two firms listed at a discount to their IPO prices, extending a recent trend of new scrips getting listed below their IPO prices.

Telecom shares edged lower, whereas cement pivotals inched forward. Tata group pivotals Tata Motors and Tata Steel had edged up.

The Sensex was up 29 points, at 12,573. It had come off higher level after a gain of as many as 94.93 points, to 12,638.78, at intra day trades. The current BSE sensitive index is quoted low at 12,505.02 with a minor loss of 38 points from last finish.

Meanwhile, S&P CNX Nifty index of NSE resumed low at 3639.35.

Later it registered a high at 3683.60 and a low at 3613.50 in mid-morning session. The present index is a negative at 3636.76 against 3643.60 on previous day's close on profit booking by local operators.

Key Asian markets recovered after an initial weakness. Hong Kong's Hang Seng moved into the green from red. It was up 0.06 per cent. In China, the Shanghai Composite Index was up 0.5 per cent. Key benchmark indices in South Korea and Taiwan were up between 0.2 and 0.6 per cent.

Telecom shares edged lower on concerns of increased competition after Vodafone on Thursday reached a partnership agreement with Essar. As per the accord, Vodafone will manage routine operations of Hutch-Essar, which will be renamed Vodagone-Essar. Reliance Communications dropped nearly 2 per cent to Rs 383, and Bharti Airtel shed 0.6 per cent to Rs 723.

ICICI Bank hiked 0.2 per cent to Rs 824, following reports that Atlanta-based Intercontinental Exchange had agreed to buy 8 per cent stake in India's National Commodity&Derivatives Exchange (NCDEX) for close to USD 40 million.

Page Industries was trading at Rs 279.60 on NSE. The stock debuted at Rs 329 compared to the IPO price (Rs 360). A strong 9.4 lakh shares changed hands in the counter on NSE.

Raj Television Network was trading at Rs 210 on NSE. The stock debuted at Rs 225 compared to the IPO price of Rs 257. As many as 8.8 lakh shares changed hands in the counter on NSE.

Cement shares firmed up on reports they had paid higher advance tax for the fourth installment. ACC rose by 0.9 per cent to Rs 738, Grasim gained 0.9 per cent to Rs 2036 and Gujarat Ambuja Cements rose 0.9 per cent to Rs 106.96.

Tata Motors gained 2 per cent to Rs 741.50, and Tata Steel rose 1.2 per cent to Rs 438.

Stock exchanges today have clubbed settlement of trades and March 19 as the latter is a bank holiday on account of Gudi Padva. This may also cap trading volumes today, brokers said.

The weekly inflation data, which will be released at about 1200 IST, may decide the trend for the day. Expectations are inflation will rise to about 6.31 per cent for the 12 months to March 3, 2007.

Annual inflation had moderated to 6.10 per cent in late February from a peak of 6.73 per cent, its highest in more than two years, at the start of the month, brokers added.

UNI