BSE Sensex: Markets open in the green

Mumbai, May 16: The Bombay Stock Exchange (BSE) Sensex today opened at 13,949.81 points and soon zoomed past the psychological barrier of 14,000 points, to be at 14,014.71, registering a gain of 85.38 points in early trades, tracking north-bound Asian markets.

Among the broader markets, the Nifty Index also opened on a positive note on the National Stock Exchange (NSE) at 4,125.40 points and soared to a high of 4,140.30, a gain of 20 points, during early trade.

Market analysts pointed out that Asian markets are mostly in the green today, but their gains were muted as investors digested a mixed bag of US data. Key benchmark indices like Hong Kong, China, Singapore, South Korea and Taiwan were up between 0.07 per cent and 0.6 per cent, they said.

At the BSE, the market breadth is strong, as 1,150 shares have risen while 508 have declined and 59 shares have remained unchanged.

Hence gainers have outpaced losers by a ratio of 2.26:1, the total turnover is Rs 631 crore, experts reasoned.

State Bank of India (SBI) rose 1.3 per cent to Rs 1,243 after the Lok Sabha yesterday passed the State Bank of India (Subsidiary Bank Laws) Amendment Bill, 2006. The amendment bill will allow SBI to reduce its stake in subsidiary banks to 51 per cent, from the existing 55 per cent.

Private sector banking major HDFC Bank gained nearly 1 per cent to Rs 1,020 and ICICI Bank 0.7 per cent to Rs 894.

Bhel was up 1.8 per cent to Rs 2,565.

Two-wheeler makers slipped ahead of Q4 March 2007 results of Bajaj Auto scheduled tomorrow. Hero Honda lost 1 per cent to Rs 690.45 and Bajaj Auto shed 0.6 per cent to Rs 2617. Last week, Hero Honda had reported dismal Q4 March 2007 results.

In contrast, both Tata Motors and Dr Reddy's Laboratories rose ahead of their Q4 results scheduled day after tomorrow. Tata Motors was up 1.1 per cent to Rs 722.70 and Dr Reddy's Lab 1.4 per cent to Rs 667.

KS Oils gained 2.6 per cent to Rs 374 after the company yesterday said its board would meet on May 23 to consider a stock split.
The Dow Industrial closed at a record high yesterday, as signs of stabilising inflation raised the prospect of lower interest rates, boosting the outlook for business investment. But, the Dow ended well off its highs of the day.

The S&P 500 index and the Nasdaq declined on disappointing results from some retailers and a report showing US home builder confidence fell in May raised concerns about consumer spending, analysts opined.

The Dow rose 37.06 points, or 0.28 per cent, to end at 13,383.84, a record close. The Dow also hit a record intra-day high of 13,481.60.

The Standard&Poor's 500 Index was down 1.96 points, or 0.13 per cent, to 1, 501.19. The Nasdaq Composite Index declined 21.15 points, or 0.83 per cent, to 2,525.29.

UNI