Mumbai: Markets open on a subdued note

Mumbai, May 15: The Sensex today opened weaker at 13,948.91 on the Bombay Stock Exchange (BSE), tracking subdued Asian markets, but galloped past the psychological barrier of 14,000 to touch 14,023.86 in early trade as predictions of an early monsoon contributed to a positive sentiment.

Among the broader markets, the Nifty Index also opened flat at 4,134.30 on the National Stock Exchange (NSE), with absolutely no change from it's previous close of 4,134.30. It however slipped by 6.05 points to 4,128.25 in early trade.

At the premier BSE, Pharma major Ranbaxy Laboratories was the top gainer, up one per cent to Rs 398.95 on 30,170 shares. ICICI Bank was up 0.91 per cent to Rs 878, HDFC rose 0.83 per cent to Rs 1,694 and HDFC Bank was up 0.73 per cent to Rs 1,003.25.

Index heavyweight Reliance Industries (RIL) was down 0.20 per cent to Rs 1,617.80 on 60,097 shares.

Hero Honda was the top loser, down 1.10 per cent to Rs 682.60 on thin early volumes of 4,354 shares.

Satyam Computers was down 0.47 per cent to Rs 459.85 and Infosys was down 0.51 per cent to Rs 1,992.

Steel pipe maker PSL jumped five per cent to Rs 233 following the company's announcement after trading yesterday that they have bagged a Rs 135 crore order from Gail India for its 124 kilometers Dabhol-Panvel pipeline project.

Market analysts pointed out that over the next few months, the progress of the June-September monsoon will hold the key as far as the market direction is concerned . The Indian meteorological department yesterday forecast that annual monsoon rains would arrive in Kerala on 24 May 2007.

The weather office said last month that this year's monsoon rains were likely to be 95 per cent of the long-term average, with a five per cent margin of error. The annual monsoon is vital for India's economic health as it provides the main source of water for agriculture, which generates more than a fifth of gross domestic product (GDP), experts explained.

Some important March 2007 quarter results are scheduled this week and the market will take its cue from how these results turn out. Bajaj Auto and Tata Steel will report Q4 results on Thursday. The board of Bajaj Auto will also consider proposal to split the company into two. Tata Motors and Dr Reddy's Laboratories unveil Q4 results on Friday.

Foreign Institutional Investors (FIIs) pressed sales of Rs 336.20 crore on Friday, last week, which was their biggest daily outflow this month so far. FIIs have been net buyers since last month but there have been bouts of outflows from them since the past few days.

FIIs had made heavy purchases in April 2007 that helped the market stage a solid rebound from lower level.

Their inflow in April 2007 totaled Rs 6,679.20 crore, traders disclosed. Market-men estimated that FIIs were net sellers of Rs 85 crore equities yesterday, while domestic institutional investors were net buyers of Rs 1.79 crore equities.

Japanese shares fell today, after a surprise fall in machinery orders while other Asia-Pacific markets were pressured by nagging worries over the US economy. But auto makers rose on news of a Chrysler buyout. The Nikkei was down 0.69 per cent. Key benchmark indices in Australia, China, Singapore and Taiwan were down by between 0.3 per cent to 0.4 per cent. But Hong Kong stocks climbed to a record boosted by Beijing's decision to allow banks to invest their client's funds in overseas stocks.

US blue-chip stocks rose yesterday, as news that DaimlerChrysler had found a buyer for its beleaguered Chrysler unit boosted automotive shares.

However, the broader market fell on renewed concerns about the economy's health. The Dow Jones industrial average rose 20.56 points, or 0.15 per cent, to end at 13,346.78. During the session, the Dow hit an all-time high of 13,383.76.

The Standard&Poor's 500 Index was down 2.70 points or 0.18 per cent at 1,503.15. The Nasdaq Composite Index dipped 15.78 points or 0.62 per cent at 2,546.44.

Oil extended gains seen in the past three sessions on concerns about supply disruptions. But forecasts of higher US oil stockpiles are limiting gains, with London Brent up 12 cents to USD 66.95 a barrel, while US crude rose 18 cents to USD 62.64, market men added.

UNI