BSE Sensex resumes higher at 12,791.60

Mumbai, Apr 5: The Bombay Stock Exchange (BSE) Sensex today opened slightly higher by four points to 12,791.60 points from its previous close of 12,786.77 points on scattered bullish support from Foreign Institutional Investors (FIIs) and mutual funds, brokers said.

Later, it drifted lower as selling emerged after the last two days continous rally.

At present, the Sensex is down by 31.40 points to 12,755.37.

After opening at 12,791.60 points, it hit a high of 12,812.88. But soon, it started declining till it touched a low of 12,711.50 points. It saw high volatility in the first few minutes of trade.

Meanwhile, the S&P CNX Nifty index of National Stock Exchange (NSE) also opened slightly higher at 3,735.20 points. Later, it recorded a high of 3,741.80 points and a low of 3709.15 points in the mid-morning session. The index is currently trading a little higher at 3,735.10 points from its last finish of 3,733.25 points.

Grasim was the top gainer, up by 1.46 per cent, to Rs 2093 on thin volumes of 4179 shares.

Tata Steel (up by 1.14 per cent), HLL (up by 1.14 per cent) and Gujarat Ambuja Cements (up 1 per cent) were the other gainers.

Index heavyweight Reliance Industries Limited (RIL) was down 0.30 per cent to Rs 1,359 on 21,045 shares. Wipro was the top loser, down by 1.07 per cent, to Rs 543.30. Dr Reddy's (down by 0.62 per cent) and ONGC (down by 0.95 per cent) were the other losers.

Gujarat Ambuja's exports jumped by 16.54 per cent to Rs 30.30 on high early volumes of 8,8041 shares, after the company fixed share buyback at a maximum price of Rs 38 per share.

The market is expected to stay weak in the absence of major buying ahead of a long weekend. It will remain closed tomorrow on account of Good Friday. Low volumes indicate that many market participants are on the sidelines. The key data today is the weekly inflation data.

The undercurrent remains cautious on concerns that economic growth will slowdown following the RBI's rate hike campaign. With inflation a percentage point above the central bank's forecast, RBI had unexpectedly raised cash reserve ratio, along with hike in short term interest rates, late last week. The wholesale price inflation rate for the 12-month period ended March 24 has fallen to 6.29 per cent from 6.46 per cent a week earlier. The data will be released today.

US stocks managed slim gains yesterday, following the previous session's big rally, as investors eyed lower oil prices and weaker than expected economic reports. The Dow Jones Industrial Average (up 19.75 to 12,530.05) and the broader S&P 500 (up 1.60 to 1,439.37) index both added a few points. The Nasdaq composite added 0.3 per cent.

US light crude oil for May delivery fell 26 cents to settle at USD 64.38 a barrel on the New York Mercantile Exchange yesterday after Iran president Mahmoud Ahmadinejad pardoned and pledged to release the 15 British sailors and marines being held, brokers added.

UNI