Sensex opens up by 30 points at 12,735.91

Mumbai, Mar 21: The Bombay Stock Exchange (BSE) Sensex today opened firm at 12,735.91 points, with a modest gain of 30 points, from its last close of 12,705.94 points on scattered bullish support from Foreign Institutional Investors (FIIs) and mutual funds.

''With no definite trend in the Asian markets, the Sensex oscillated between the positive and negative territories during the intra-day trade. The IT shares were subdued due to the rupee's surge over the past two days,'' brokers said.

Later, the Sensex registered a high at 12,773.60 points and a low at 12,664.33 points in mid-morning session. The index is currently trading up by 54.25 points at 12,760.19 from its last close of 12,705.94 points.

Meanwhile, the National Stock Exchange S&38;38;P CNX Nifty index resumed flat at 3,697.70 points and later recorded a high at 3,720.80 and a low at 3,680.60 points in the intra-day trades. The index is at present firm at 3,704.85 points, with a small gain of seven points, from its last close at 3,697.60 points.

Reliance Energy advanced for the second day in a row. The stock was up by 2 per cent to Rs 486.35, after advancing 4 per cent on yesterday's Rs 476.15.

ICICI Bank rose by 1.4 per cent to Rs 835. The private bank's ADR gained by 1.2 per cent to US 38.62 dollars on Tuesday. But HDFC Bank lost 0.2 per cent to Rs 952, while its ADR gained 2 per cent to USD 67.70 on Tuesday.

IT shares slipped for the second day in a row, after they were hit by the rupee's surge. Satyam Computer dropped by 1.1 per cent to Rs 440.50, TCS lost by 0.5 per cent to Rs 1246, and Wipro shed by 0.1 per cent to Rs 572.50. Infosys, however, rose by 0.2 per cent to Rs 2058.90. IT shares derive a lion's share of their revenue in dollar terms. A higher rupee, therefore, may lead to a fall in their revenue and profits to that extent.

Nestle India dropped by 1.6 per cent to Rs 895 after reporting a fall in its net profit by 15.7 per cent for the December 2006 quarter.

The Asian markets were in the green. China's main index, whose sharp drop late last month triggered a global flight from risk and sent equity markets tumbling, hit an all-time high. Japanese markets are closed for a holiday.

The US stocks rose yesterday as a series of takeover deals bolstered the investors confidence and offset apprehensions about the latest Federal Reserve rate-setting meeting. The Dow Jones industrial average ended up by 61.93 points, or 0.51 per cent, at 12,288.10. The Standard &38;38; Poor's 500 Index closed up by 8.88 points, or 0.63 per cent, at 1,410.94. The Nasdaq Composite Index finished up by 13.80 points, or 0.58 per cent, at 2,408.21 yesterday, brokers added.

UNI