Sensex opens 164 points up

Sensex added another 164.40 pts to 16,883.27 with all the sectoral indices,led by metal trading in positive zone with gains of up to 1.71.

The BSE benchmark Sensex rose by over 164 points in early trade today on increased buying by funds and retail investors,supported by recovery in the rupee and a firming trend in Asian markets.

Extending gains for the sixth day in a row,the 30-share index,added another 164.40 points,or 0.98 per cent,to 16,883.27 with all the sectoral indices,led by metal trading in positive zone with gains of up to 1.71 per cent.

Sensex has gained 754 points in the previous five sessions.

The wide-based National Stock Exchange index Nifty moved up by 47.05 points,or 0.93 per cent,to 5,115.40.

Brokers said fresh buying by funds and retail investors,following recovery in the rupee against the American currency and a firming trend on Asian bourses boosted the trading sentiment here.

Asian shares today rose after finance ministers of the euro-zone nations,in a emergency conference call last week,agreed to lend Spain up to 100 billion euros to stabilise its banks,relieving markets that had feared for the country8217;s fiscal collapse.

The rupee was trading 32 paise higher at Rs 55.10 against the US dollar in early trade.

In the Asian region,Hong Kong8217;s Hang Seng Index rose by 2.03 per cent and Japan8217;s Nikkei Index up by 1.86 per cent in morning trade.

PreOpen Sensex to watch

GLOBAL MARKETS

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The near-month derivative contract for India8217;s NSE index at Singapore Exchange rose 0.9 percent,while the MSCI Asia ex-Japan rose 1.5 percent.

Asian shares jumped on Monday after euro zone finance ministers agreed to lend Spain up to 125 billion to shore up its struggling banks,relieving markets that had feared for the country8217;s fiscal collapse.

US stock index futures pointed to steep gains,looking to extend Wall Street8217;s recent rally after euro zone finance ministers agreed on an aid package to help Spain.

FACTORS TO WATCH

Car,bike and truck sales data for May,released by the Society of Indian Automobile Manufacturers. 0530GMT

INDIAN STOCKS TO WATCH

COMMODITIES/ENERGY

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Jindal Steel amp; Power JSPL said it was making plans to scrap a 2.1 billion steel project in Bolivia,saying the Bolivian government had not met contract terms that include supply of natural gas for the project.

FINANCIAL REGULATORY

The Reserve Bank of India increased the number of remittances by non-resident Indians to individuals to 30 from 12 per year. The measure is another step to help boost dollar inflows and protect a weakening rupee.

Promoters of new insurance companies would have to come up with nearly twice the statutory capital requirement.

Life Insurance Corporation is open to investing in companies with good governance practices and a good track record,says DK Mehrotra,who recently assumed charge as chairman of the insurance giant.

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IT outsourcing company Zensar Technologies is looking to spend up to 60 million on an acquisition this year to boost its presence in the United States.

TELECOMS

Global telecom companies Alcatel-Lucent SA and Ericsson have emerged as front runners for Reliance Communications8217; 80 billion rupees long-term outsourcing contract.

OTHER FACTORS TO WATCH

Indian debt/FX factors to watch

Euro jumps above 1.26 on Spain bank relief

Brent above 102 on Spain rescue,Iran

Foreign institutional investor flows

For closing rates of Indian ADRs