BSE Sensex opens on positive terrain

Mumbai, May 3: The Sensex today opened in the green on the Bombay Stock Exchange (BSE) registering a gain of 115.40 points at 13,987.77 from it's previous close of 13,872.37 points.

The broader 50-stock Nifty Index also opened with a marginal gain of 1.55 points on the National Stock Exchange (NSE) at 4,089.45 from it's previous close of 4,087.90 points.

Market analysts are of the view that with the fourth quaterly (Q4) earnings season in full-swing, stock-specific buying is likely to continue in the near-term. The major Q4 result today is that of housing finance major, HDFC.

Also, the Union Budget 2007-08 is due to be passed by Parliament today and markets will keep an eye for any rollback measures from Budget Day (28 February, 2007). The market will keep a close vigil on whether the finance minister withdraws the export duty on iron ore exports, which has hit shipments to China, and any changes to bring employee stock options plans (ESOPS) under the fringe benefit tax (FBT), experts pointed out.

Market pundits note that another key factor is the outcome of the ongoing seven-phased Uttar Pradesh assembly elections that gets over early this month. The outcome of this poll is seen as a barometer of national political trends. Some opinion polls show the opposition Bharatiya Janata Party (BJP) emerging second in the race, further adding to the woes of the ruling Congress, which is already battling rising prices.

Meanwhile, global markets remain firm today. Asian markets edged higher today after US stocks hit fresh record highs yesterday. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and China were up between 0.28 - 2 per cent.

US stocks rallied yesterday, as robust profits and a flurry of buyout offers powered the Dow Jones industrials to a record-high and the S&P 500 to its highest level in over six years. Shares of manufacturing companies that sell their products abroad, such as appliance maker Whirlpool Corp and lawn mower maker Toro Co., posted sharp gains after government data showed bigger-than-expected increases in US factory orders. The Dow Jones industrial average was up 75.74 points, or 0.58 per cent, at 13,211.88. The Standard&Poor's 500 Index was up 9.62 points, or 0.65 per cent, at 1,495.92.

The Nasdaq Composite Index was up 26.31 points, or 1.04 per cent, at 2,557.84.

UNI

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