Markets advance ahead of inflation figure

Mumbai, July 6: The Sensex advanced by 33.77 points on the Bombay Stock Exchange (BSE) at 14,895.66 from it's previous close of 14,861.89 in early trade after opening weaker at 14,843.43 ahead of the inflation figure due today.

''The market showed strength in mid-morning trade after it had opened slightly weak tracking weak Asian markets. The BSE Sensex crossed the 14,900 mark. Telecom stocks were in demand while banking shares were offloaded,'' market analysts noted.

The Nifty Index also gained by around 12 points on the National Stock Exchange (NSE) at 4,365.80 from it's previous close of 4,353.95 after opening virtually unchanged.

BSE data revealed that the market breadth was strong with close to 2 gainers for every loser. 1,540 shares advanced as compared to 745 that declined, while 81 remained unchanged. The total turnover on the premier BSE amounted to Rs 1,825 crore. Among the Sensex pack, 24 advanced while the rest declined.

Wholesale price inflation data for the week ending 23 June 2007 is expected by noon today. Annual inflation was 4.03 per cent in the week ending 16 June 2007, the lowest in 14 months. The fall in inflation has been attributed to decline in prices of certain essential food items and manufactured products and strong base effect.

The early winners today were Reliance Communications, Reliance Industries (RIL), Bharti Airtel, Ambuja Cements, ACC, Grasim, UltraTech Cement Company, India Cements and Real-estate major DLF.

The early laggards were ICICI Bank, State bank of India, Federal Bank and Canara Bank.

Asian markets were trading weak today. Japan's Nikkei 225 index reversed direction after six straight days of gains. Nikkei slipped 0.63 per cent at 18,107.50. Hang Seng dipped 0.59 per cent at 22,121.80 and Shanghai Composite eased 0.98 per cent at 3,580.50.

US stocks closed mixed in post-holiday trading yesterday as a rebound in bond yields stifled Wall Street's excitement about new buyout activity and strength in the US service sector. The Dow fell 11.46 points, or 0.08 per cent, to 13,565.84. The Standard&Poor's 500 index rose 0.53 points, or 0.03 per cent, to 1,525.40, while the Nasdaq Composite index rose 11.70 points, or 0.44 per cent, to 2,656.65.

UNI