Sensex opens low at 13,127.86, down by 56 pts

Mumbai, Apr 12: The Bombay Stock Exchange (BSE) Sensex today resumed negative at 13,127.86 points, recording a major loss of 56 points, from its last finish of 13,183.24 points on sustained heavy selling by bearish operators in view of subdued advices from global bources, brokers said.

The key equity prices drifted lower in opening trade, tracking mostly weak global markets.

Later, the Sensex drifted lower by 96 points to be at 13,087 points. It came off the lower level after having lost as many as 152.37 points, to a low of 13,030.87 points in the mid-morning session.

The Asian stocks fell in the morning session, with Japan's Nikkei posting one of the biggest decline as technology shares slid, dented by concern about the economic outlook for the United States and a rise in oil prices. Minutes of the US Federal Reserve's March meeting, released on Wednesday, hinted at a need for further interest rate increases in the United States to fight inflation. The Nikkei was down by 0.7 per cent.

Other key benchmark indices in Hong Kong, Singapore and Taiwan were down between 0.05-0.8 per cent, brokers informed.

US stocks fell yesterday, as markets faced up to reality that the Federal Reserves may raise interest rates again to quash inflation.

The Dow Jones industrial average fell 89.23 points, or 0.71 per cent, to 12,484.62 points. The Standard&Poor's 500 Index slid 9.52 points, or 0.66 per cent, to 1,438.87. The Nasdaq Composite Index also lost 18.30 points, or 0.74 per cent, to 2,459.31 last night.

Rising US interest rates do not bode well for emerging markets, since cash in emerging markets may become a casualty as a result.

ONGC declined by 1.4 per cent to Rs 867. Oil and Natural Gas Corporation (ONGC) will invest over Rs 6700 crore to raise oil and gas output, and set up the first large power plant, the state-run oil exploration company said on Wednesday.

IT bellwether Infosys came off the lower level of Rs 1972. The scrip was up 0.1 per cent to Rs 1995. Infosys kickstarts the earnings season on April 13. The rupee's sharp surge in late-March 2007-early April 2007 against the US dollar, as well as mixed reports from the US economy, have raised concerns that the FY 2008 guidance by Infosys may turn out conservative. Infosys unveils their full year guidance at the beginning of the financial year along with Q4 March results.

TCS shed 0.3 per cent to Rs 1186.25. As per a report, Tata Sons is considering a USD one billion-plus overseas equity offering in Tata Consultancy Services (TCS) to fund acquisitions. The offer may take place in six months and include the sale of new shares, a newspaper report said.

Banking scrips drifted lower. HDFC Bank eased 2.3 per cent to Rs 957, State Bank of India shed 1.1 per cent to Rs 970 and ICICI Bank lost by one per cent to Rs 850. Housing finance major HDFC was also down by 2.3 per cent to Rs 1545.

Auto shares had slipped. Tata Motors lost by 1.8 per cent to Rs 708 and car major Maruti Udyog shed by 1.6 per cent to Rs 769.40.

Real estate developer Orbit Corporation was trading at Rs 126.50 on BSE. The scrip was at Rs 90 as compared to the IPO price of Rs 110 in the morning session. As many as 26.3 lakh shares changed hands in the counter on BSE.

Cement shares edged lower. ACC lost 0.4 per cent to Rs 728 and Grasim shed 0.8 per cent to Rs 2203.

Gujarat Ambuja Cements dropped nearly by one per cent to Rs 106.80, after it said on Wednesday its March shipments fell 4.5 per cent to 1.48 million tonnes from a year earlier.

The key economic data of February 2007 industrial production is slated for release today, the market estimates of which fall in the 9-14 per cent growth range. Industrial production had risen 10.9 per cent in January, lower than a 12.5 per cent growth in December last year. The data is expected at about this noon.

NYMEX crude for May delivery was down 14 cents at USD 61.87 in Asian trading today amid lingering concern over a potential supply crunch this summer. The rising concern over fuel stocks came against the backdrop of tensions between the US and oil exporter, Iran, as well as production cuts by OPEC, brokers added.

UNI