Sensex opens above 17,000, while Nifty hits 5,000

Mumbai, Sep 27 (UNI) The Bombay Stock Exchange (BSE) Sensex today opened above the psychological barrier of 17,000 at 17,059.61 from it's last close of 16,921.39 and is on positive terrain, up by around 120 points in the pre-lunch session.

However, the thunder of the day's early session was stolen by the National Stock Exchange (NSE) Nifty which breached it's life-time high of 5,000 today.

''Domestic indices opened on a buoyant note tracking firm global markets as weak US economic data reinforced expectations for another interest rate cut from the Federal Reserve, following a steep half-point reduction to 4.75 per cent last week.

At the day's high of 17,158.49, the Sensex had gained 237.10 points for the day so far. The market breadth was strong with 1,332 shares advancing as compared to 604 that declined, while 62 remained unchanged. The total turnover till now amounted to Rs 896 crore Among the 30-member Sensex pack, 27 advanced while the rest declined.

Reliance Energy (REL), ACC, Cipla, Tata Steel and Reliance Industries rose while Hindustan Unilever, Bajaj Auto, and Grasim tanked.

Market is expected to see volatility as derivative contracts for this month's series expires today. As per market data, marketwide rollover from this month's series to next month's series stood at 64 per cent while that of Nifty was 59 per cent till the end of yesterday's trading.

Asian markets extended early gains today, after stocks rallied on Wall Street overnight. Hang Seng, Japan's Nikkei, Taiwan Weighted Singapore's Straits Times and South Korea's Seoul Composite, all edged higher.

US stocks rallied yesterday, led by rally in financial shares after a larger-than-forecast decrease in durable goods orders reinforced expectations of more rate cuts. The Dow Jones Industrial Average gained 99.5 points or 0.7 per cent, to 13,878.15. The Nasdaq Composite Index increased 15.58 points or 0.6 per cent to 2,699.03.

The Standard&Poor's 500 Index added 8.21 points or 0.5 per cent to 1,525.42.

Crude oil prices held above USD 80 today as traders balanced rising stockpiles in the United States against fears that a brewing storm could impact production in the Gulf of Mexico. US crude for November delivery rose 25 cents to USD 80.55 a barrel and London Brent crude rose 34 cents to USD 77.77 a barrel.

UNI