Sensex opens 100 pts up on FDI boost norms, Telcos gain

A day after the government relaxed FDI rules in various sectors, markets opened in the green, with Sensex rising more than 100 points.

The BSE Sensex opened at 19958.46, up 0.54 percent while the Nifty opened at 5981.65, up 0.44 percent.

The rupee gained modestly today after measures taken by the RBI to suck out rupee liquidity.The rupee was at 59.19/20 after rising to 59.05 as against 59.31/31 last close.However, bond yields jumped, adding to Tuesday’s large bond price losses. Yield on the most traded 8.33 pct 2026 bond was 10 basis points higher at 8.27 pct.

Globally, Asian shares inched higher on Wednesday, while the dollar held a three-week low on expectations Federal Reserve Chairman Ben Bernanke will reiterate later in the day that US monetary policy is to stay accommodative. Bernanke is set to testify to Congress on Wednesday and Thursday, which could provide further clarity on when the U.S. central bank will roll back its $85 billion a month bond-buying program.

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Bernanke’s remarks about paring back on the Fed’s bond purchases as far back as May set the markets on edge.

Domestically, the market is poised for a blockbuster rally today as the dollar-hungry governmentrelaxed FDI reforms in 13 sectors. Industry body experts say the government move to relax FDI norms in various sectors will bring fresh investments into the country and boost economic growth.The decision to shore up foreign direct investment (FDI) in 12 sectors including telecom and insurance indicates that the much-needed reforms are underway to boost India’s growth, they said.

Stocks in news:

Telecom stocks were all in green with Bharti Airtel up 1 percent, Idea up 2.8 percent, RComm 3.5 pct, MTNL 2.7 percent. On Tuesday, government allowed 100 percent foreign direct investment in the telecom sector, meeting a key demand of the fund-starved industry.

BSE banking index is the only sectoral loser, down 0.1 percent. Several banking stocks continue to be under pressure – Yes Bank down 2 percent, Axis down 1.4 percent on the RBI norms.

HDFC Bank opened 0.39 percent down ahead of its Q1 earnings today. Its net profit is expected to grow 30 percent year-on-year to Rs 1,890 crore, according to an average poll estimate by CNBC TV18.