Sensex: Markets open with marginal gains

Mumbai, May 8: The Sensex today opened in the green with a modest gain of 6.75 points on the Bombay Stock Exchange (BSE) at 13,886.00 from its previous close of 13,879.25 points, due to weakness in information technology (IT) pivotals, which drifted lower tracking an overnight fall in their ADRs.

Among the broader markets, the Nifty Index also gained a marginal 0.10 points on the National Stock Exchange (NSE) to open at 4,111.25 from its previous close of 4,111.15 points.

Metal shares edged up today, after Shanghai copper and zinc futures rose by 4 per cent. Hindalco gained 1.8 per cent to Rs 147.60 and Sterlite Industries advanced 1.2 per cent to Rs 543. Tata Steel rose 1.3 per cent to Rs 559.25.

IT pivotals, however, drifted lower, tracking an overnight fall in their ADRs. Infosys shed 1.2 per cent to Rs 2,013, after its ADR lost 3.67 per cent to US 51.92 dollars yesterday. Wipro shed 1 per cent to Rs 549, after its ADR shed 2.3 per cent to USD 16.58 yesterday. But Satyam Computer rose 0.3 per cent to Rs 461.75, even as its ADR shed 1.5 per cent to USD 24.59 yesterday.

Index heavyweight Reliance Industries (RIL) rose 0.1 per cent to Rs 1,607.

A strong 52,606 shares changed hands in the counter on BSE.

Tata Tea rose 0.18 per cent to Rs 763.60. The company today said that it had formed a joint venture with China's Zhejiang Tea Import and Export Company to make and sell tea beverage products. The company said it would own 70 per cent of the joint venture. The cost of the project was estimated at Rs 70 crore and would be funded through a mix of equity and debt, Tata Tea said.

Tech Mahindra dropped nearly 5 per cent to Rs 1546.25.

The Asian stocks gave up early gains today, as nervous investors worried whether a global rally would run out of steam.

The Dow closed at a record yesterday for the fifth day in a row, gaining 48.35 points, or 0.36 per cent, to end at a record of 13,312.97 points. It had hit an all-time high of 13,317.69 points during an intraday session.

The Standard&Poor's 500 Index advanced 3.86 points, or 0.26 per cent, to finish at 1,509.48, off a fresh 52-week high at 1,511.00 points.

But the Nasdaq Composite Index dipped 1.20 points, or 0.05 per cent, to close at 2,570.95. Earlier, it had also reached a new 52-week high at 2,580.06.

A spate of merger and acquisition activity, as well as increasingly eye-popping takeover bids have helped propel many global indices to record highs, supporting the view that the long bull market has to run further, market analysts explained.

UNI