Sensex opens low at 12,862.53 pts, down by 22 pts

Mumbai, Mar 29 (UNI) The 30 scrips of BSE Sensex today resumed lower at 12,862.53 points with a modest loss of around 22 points compared to its previous day's close of 12,884.34 points on profit booking by local operators.

The Bombay Stock Exchange (BSE) Sensitive Index (Sensex), which had opened weak, later again slipped into the red. The market was extremely volatile during the opening trade.

The current Sensex is up by 24.57 points and quoted at 12,908.91 compared to 12,884.34 points on its last close. It recorded a high of 12,970.26 and a low of 12,862.53 in mid-morning session.

Similarly, the S&P CNX Nifty index of the National Stock Exchange (NSE) also resumed low at 3,759.15 points. Later, it registered a high at 3,802.80 and a low at 3 ,750.35 points during intra-day trades. The present index gained by around eight points and touched a high at 3,769.20 points against 3,761.10 on the last close.

However, it registered a high at 3,802.80 and 3,750.35 points in mid-morning session.

Volatility is expected to continue till the expiry of March 2007 derivative contracts, scheduled today. Short positions continued to be carried forward to the April 2007 series, ahead of the expiry of the March 2007 contracts. As per estimates, the market-wide rollover from March 2007 contracts to April 2007 contracts so far (at the end of Wednesday, March 28) has been pegged at 46-48 per cent, similar to the trend seen in the previous expiries.

Hero Honda was the top gainer, up by 1.52 per cent to Rs 665.95, on a thin volume of 2,830 shares. HDFC (up 1.41 per cent), L&T (up 1.20 per cent), and Wipro (up 0.86 per cent) were the other gainers.

HDFC Bank was the top loser, down by 1.41 per cent to Rs 942, on a volume of 9,552 shares.

Index heavyweight Reliance Industries (RIL) was up by 0.95 per cent to Rs 1,360.80, on a volume of 1.13 lakh shares.

Paradyne Infotech gained by 3.4 per cent to Rs 91, after the company said yesterday its board had approved the acquisition of US-based Links Group International in a USD 4.75 million all-cash deal.

Trend in global markets is impacting domestic bourses in the past few weeks. Most Asian markets were in the green today, which may provide support to the domestic bourses.

The Sensex's 240-point fall on Wednesday was largely due to weakness in global markets. European and Asian stocks had slipped yesterday and the yen had risen against higher-yielding currencies as Iran worries prompted investors to ditch risky carry trade positions based on cheap borrowing in the Japanese currency.

Fresh risk aversion was sparked by tensions over Iran. US crude jumped USD 5 to a six-month high of more than USD 68 a barrel late on Tuesday, on rumours of a military clash between Iran and the US navy. Oil prices relented on Wednesday after Washington dismissed the talk, but stayed up by nearly USD 1 for the day.

Key benchmark indices in Hong Kong, China, South Korea, Singapore and Taiwan were up between 0.1-2.2 per cent. But barring China's Shanghai Composite Index, which was up 2.2 per cent, gains were muted, between 0.1-0.3 per cent in benchmark indices of Hong Kong, South Korea, Singapore and Taiwan. Japan's Nikkei 225 average was down nearly one per cent, brokers added.

UNI