The BSE benchmark Sensex jumped over 170 points in the morning trade today as funds and retail investors enlarged their positions, taking cues from a firming trend in other Asian bourses.
At 9.45 a.m., the Sensex was up 173.42 points or 0.96 per cent at 18,314.82 and the Nifty up 50.55 points or 0.93 per cent at 5,478.65.
Volume toppers during the session were L&T, SBI, RIL, Tata Steel and ICICI Bank. Major Sensex gainers were L&T, ICICI Bank, HDFC, RIL, Bharti Airtel, ONGC and SBI. Infosys, HDFC Bank and Tata Steel were the major losers.
All the sectoral indices were trading in green. Among them, capital goods was up 2.43 per cent, bankex 1.00 per cent, auto 0.96 per cent and power 0.85. Of the total 1,675 stocks traded, 1,083 advanced, 512 declined and 80 remained unchanged.
In the opening session, the 30-share BSE index, which gained 55.2 points on Thursday, moved up further by 77.10 points to 18,218.50. Similarly, the broad-based National Stock Exchange Nifty index rose 25.7 points to 5,453.80.
Besides a firming trend in other Asian bourses, easing food inflation and a decline in crude oil prices in the global market also boosted the domestic trading sentiment.
Meanwhile in other Asian markets, Hong Kong’s Hang Seng index was trading up by 0.24 per cent, while Japan’s Nikkei edged higher by 0.29 per cent in the morning trade. The US Dow Jones Industrial average ended 0.36 per cent higher on Thursday.
Thursday, May 19, 2011
Cairn and Vedanta agree open-ended deadline
Cairn Energy has extended the deadline for completing the $9.6bn (£5.9bn) sale of its Indian unit to Vedanta, the London-listed, Indian-focused mining company, while awaiting New Delhi’s blessing for the deal.
In a statement, the British oil explorer said it was not setting any new deadline but that the two companies had agreed to “extend the closing date on their sale and purchase agreement in order to secure the necessary consents and approvals from the government of India to complete the transaction”.
At Thursday’s annual meeting in Edinburgh Sir Bill Gammell, Cairn’s founder and chief executive, told shareholders he “hoped to get a satisfactory conclusion in a short period of time”. He added: “In India you need the three P’s: positive, patience and perseverance.”
In August Cairn agreed to sell to Vedanta – the metals mining company founded by the self-made, Indian-born billionaire Anil Agarwal – up to a 51 per cent stake in its strategically important Rajasthan oilfields. But the deal became bogged down by the process of obtaining government clearance, due to an unresolved royalty dispute between Cairn and the state-owned Oil and Natural Gas Company, a joint venture partner in the Rajasthan fields.
The Congress-led government is to decide whether it should require a settlement of the dispute as a precursor to the sale, or rather to allow Vedanta to take over the company, and then to let ONGC contend with the new owners to settle the dispute.
New Delhi has been dithering over a decision, forcing Cairn and Vedanta to repeatedly extend their deadline for closing the deal. Sir Bill had previously described the proposed sale as a litmus test of whether foreign companies can actually exit from Indian investments in a time and manner of their choosing.
The two companies had hoped New Delhi’s cabinet committee on economic affairs was poised to make a decision in early April. Instead, the cabinet referred the issue to a group of ministers, which has yet to meet but is expected to do so later this month, prompting the latest extension. The last deadline was due to expire on May 20.
Over the past month, Vedanta has acquired an 18.5 per cent stake in Cairn India, picking up a 10.3 per cent stake in a block deal with Malaysia’s Petronas, and another 8.1 per cent holding by a mandatory open offer to minority shareholders of Cairn India.
The companies have agreed that Cairn will sell a 40 per cent sake to Vedanta, retaining a 21.7 per cent interest in the business.
In a statement, the British oil explorer said it was not setting any new deadline but that the two companies had agreed to “extend the closing date on their sale and purchase agreement in order to secure the necessary consents and approvals from the government of India to complete the transaction”.
At Thursday’s annual meeting in Edinburgh Sir Bill Gammell, Cairn’s founder and chief executive, told shareholders he “hoped to get a satisfactory conclusion in a short period of time”. He added: “In India you need the three P’s: positive, patience and perseverance.”
In August Cairn agreed to sell to Vedanta – the metals mining company founded by the self-made, Indian-born billionaire Anil Agarwal – up to a 51 per cent stake in its strategically important Rajasthan oilfields. But the deal became bogged down by the process of obtaining government clearance, due to an unresolved royalty dispute between Cairn and the state-owned Oil and Natural Gas Company, a joint venture partner in the Rajasthan fields.
The Congress-led government is to decide whether it should require a settlement of the dispute as a precursor to the sale, or rather to allow Vedanta to take over the company, and then to let ONGC contend with the new owners to settle the dispute.
New Delhi has been dithering over a decision, forcing Cairn and Vedanta to repeatedly extend their deadline for closing the deal. Sir Bill had previously described the proposed sale as a litmus test of whether foreign companies can actually exit from Indian investments in a time and manner of their choosing.
The two companies had hoped New Delhi’s cabinet committee on economic affairs was poised to make a decision in early April. Instead, the cabinet referred the issue to a group of ministers, which has yet to meet but is expected to do so later this month, prompting the latest extension. The last deadline was due to expire on May 20.
Over the past month, Vedanta has acquired an 18.5 per cent stake in Cairn India, picking up a 10.3 per cent stake in a block deal with Malaysia’s Petronas, and another 8.1 per cent holding by a mandatory open offer to minority shareholders of Cairn India.
The companies have agreed that Cairn will sell a 40 per cent sake to Vedanta, retaining a 21.7 per cent interest in the business.
Business barometer shows brightening outlook
Twice as many business leaders say that the world economy is going to improve in the next six months than think it is going to get worse, according to the FT/Economist global business barometer.
The bullish sentiment expressed by international executives was moderated by fears about the effect of the eurozone crisis, as well as the impact of rising oil and commodity prices.
The new quarterly survey of more than 1,500 executives, conducted for The Economist and the Financial Times by the Economist Intelligence Unit, showed 38 per cent thought the global economy would pick up in the next six months and 19 per cent thought it would deteriorate, giving a balance of 19 per cent who were optimistic about the future. That compares with a balance of almost 40 per cent of executives who foresaw a worsening of the global economy in a similar survey in September 2008, during the early stages of the financial crisis.
Agribusiness, energy and manufacturing executives seemed to be the most hopeful about the future, while transport, health and pharmaceuticals and construction were the most downbeat sectors.
While the business environment appears relatively good in the near future, nearly two-thirds of executives were worried the worst was yet to come in the eurozone’s sovereign debt crisis, indicating a low level of confidence that official efforts have come close to delivering a solution.
Businesses also appeared concerned about high inflation and the prospect of interest rate rises by central banks round the world.
Rising oil prices, higher interest rates and increases in other commodity prices were ranked as the top three concerns of businesses in the next six months, with about 40 per cent of executives concerned about each.
Business people seemed to be confident about the performance of their own companies, with many saying they could perform better than their industry as a whole. A balance of 25 per cent of executives thought their industry would see improving conditions in the next six months, while 50 per cent thought their own companies would do better.
the discrepancy between executives’ views of the state of their industry was greatest in consumer goods, where a modest balance of 14 per cent thought the sector would see conditions improve but 61 per cent saw better times at their own companies.
The outlook for employment was encouraging, with only 13 per cent of executives expecting job cuts in the next year and stronger hiring expected in North America. But the survey adds to the sense US companies are holding on to large piles of cash instead of committing capital to expand their businesses. Whereas less than a quarter of companies outside North America said they would sit on surplus cash rather than pay it out to shareholders or use it for acquisitions in the next year, in North America a third of companies said they planned to retain extra cash – the highest proportion for any region of the world.
The bullish sentiment expressed by international executives was moderated by fears about the effect of the eurozone crisis, as well as the impact of rising oil and commodity prices.
The new quarterly survey of more than 1,500 executives, conducted for The Economist and the Financial Times by the Economist Intelligence Unit, showed 38 per cent thought the global economy would pick up in the next six months and 19 per cent thought it would deteriorate, giving a balance of 19 per cent who were optimistic about the future. That compares with a balance of almost 40 per cent of executives who foresaw a worsening of the global economy in a similar survey in September 2008, during the early stages of the financial crisis.
Agribusiness, energy and manufacturing executives seemed to be the most hopeful about the future, while transport, health and pharmaceuticals and construction were the most downbeat sectors.
While the business environment appears relatively good in the near future, nearly two-thirds of executives were worried the worst was yet to come in the eurozone’s sovereign debt crisis, indicating a low level of confidence that official efforts have come close to delivering a solution.
Businesses also appeared concerned about high inflation and the prospect of interest rate rises by central banks round the world.
Rising oil prices, higher interest rates and increases in other commodity prices were ranked as the top three concerns of businesses in the next six months, with about 40 per cent of executives concerned about each.
Business people seemed to be confident about the performance of their own companies, with many saying they could perform better than their industry as a whole. A balance of 25 per cent of executives thought their industry would see improving conditions in the next six months, while 50 per cent thought their own companies would do better.
the discrepancy between executives’ views of the state of their industry was greatest in consumer goods, where a modest balance of 14 per cent thought the sector would see conditions improve but 61 per cent saw better times at their own companies.
The outlook for employment was encouraging, with only 13 per cent of executives expecting job cuts in the next year and stronger hiring expected in North America. But the survey adds to the sense US companies are holding on to large piles of cash instead of committing capital to expand their businesses. Whereas less than a quarter of companies outside North America said they would sit on surplus cash rather than pay it out to shareholders or use it for acquisitions in the next year, in North America a third of companies said they planned to retain extra cash – the highest proportion for any region of the world.
No takers for Barclays credit card biz
MUMBAI: Barclays India , which has put its credit cards business on the block, is yet to find any taker, even though the bank has offered a huge discount, according to bankers who were approached for the sale.
The UK-headquartered bank, which is now scaling down its retail business in India after a pile-up of bad loans disbursed over three years ago before the slowdown in the economy, has also been restructuring its small and medium enterprises business. "Barclays' card business is being offered at a huge discount but there are no takers in the market," said the chief executive officer of a private sector bank who was offered the portfolio. A Barclays spokesperson in an email statement to ET said, as a global bank it keeps all its businesses under strategic review.
"We are reviewing options for cards, a business which requires scale and which may be able to achieve that scale under a new ownership," a spokesperson said.
According to banking industry estimates, Barclays has a card base of about 2.5 million. However, ET could not verify this number independently. In its annual report for 2010, Barclays had said it would focus on those areas where it can be top tier in the minds of clients and deliver good returns such as high net-worth business in wealth and equities and advisory business in investment banking.
Barclays, which launched its consumer banking operations with much fanfare in May 2007, saw a spike in non-performing loans on aggressive customer acquisition. The bank has been consolidating its consumer banking book since 2009. According to the last published financials, the bank has shrunk its advances book by 28.30% to 7,565 crore at the end of March 2010 against 10,551 crore in March 2009. Its net non-performing loans rose to 5.15% at the end of March 2010 compared with 4.59% last year, said the RBI publication profile of banks.
The bank has reduced its employee strength by 451 personnel to 1,083 executives at the end of March 2010 against 1,534 employees in the previous year. In 2007-08, the bank had around 2,078 employees, according to the data.
"For corporate banking, our focus is on the large corporate, MNC and financial institution customer base. As a result, the SME coverage currently conducted within corporate banking will reduce and wherever possible, the staff will be deployed elsewhere within Barclays," the spokesperson said. On the retail banking side, the bank said it will continue to focus on the mass affluent customers through a wide range of lending, deposit, investment and insurance products.
The bank's NBFC, Barclays Investments & Loans India, or Barclays Investments, is also reeling under losses. The bank, like other foreign banks, had floated the NBFC to improve its branch penetration. The NBFC offers unsecured loans, loans against shares and loans against property.
Crisil in its rating rationale on the NBFC said: "Barclays Investments' standalone credit risk profile is constrained by its weak asset quality and earnings profile. In the personal loans segment the 90+days past due loans were at a high level of 11% of advances as on December 31, 2010, albeit much improved from the peak levels of 18.1% as on December 2009."
The UK-headquartered bank, which is now scaling down its retail business in India after a pile-up of bad loans disbursed over three years ago before the slowdown in the economy, has also been restructuring its small and medium enterprises business. "Barclays' card business is being offered at a huge discount but there are no takers in the market," said the chief executive officer of a private sector bank who was offered the portfolio. A Barclays spokesperson in an email statement to ET said, as a global bank it keeps all its businesses under strategic review.
"We are reviewing options for cards, a business which requires scale and which may be able to achieve that scale under a new ownership," a spokesperson said.
According to banking industry estimates, Barclays has a card base of about 2.5 million. However, ET could not verify this number independently. In its annual report for 2010, Barclays had said it would focus on those areas where it can be top tier in the minds of clients and deliver good returns such as high net-worth business in wealth and equities and advisory business in investment banking.
Barclays, which launched its consumer banking operations with much fanfare in May 2007, saw a spike in non-performing loans on aggressive customer acquisition. The bank has been consolidating its consumer banking book since 2009. According to the last published financials, the bank has shrunk its advances book by 28.30% to 7,565 crore at the end of March 2010 against 10,551 crore in March 2009. Its net non-performing loans rose to 5.15% at the end of March 2010 compared with 4.59% last year, said the RBI publication profile of banks.
The bank has reduced its employee strength by 451 personnel to 1,083 executives at the end of March 2010 against 1,534 employees in the previous year. In 2007-08, the bank had around 2,078 employees, according to the data.
"For corporate banking, our focus is on the large corporate, MNC and financial institution customer base. As a result, the SME coverage currently conducted within corporate banking will reduce and wherever possible, the staff will be deployed elsewhere within Barclays," the spokesperson said. On the retail banking side, the bank said it will continue to focus on the mass affluent customers through a wide range of lending, deposit, investment and insurance products.
The bank's NBFC, Barclays Investments & Loans India, or Barclays Investments, is also reeling under losses. The bank, like other foreign banks, had floated the NBFC to improve its branch penetration. The NBFC offers unsecured loans, loans against shares and loans against property.
Crisil in its rating rationale on the NBFC said: "Barclays Investments' standalone credit risk profile is constrained by its weak asset quality and earnings profile. In the personal loans segment the 90+days past due loans were at a high level of 11% of advances as on December 31, 2010, albeit much improved from the peak levels of 18.1% as on December 2009."
Scooters India divestment okayed
NEW DELHI: The Union Cabinet on Thursday gave an uncontested green signal to the disinvestment of Scooters India (SIL) but found itself saddled with political concerns from the ruling Congress. The Centre gave its nod to divest its entire 95% equity to a joint venture partner to revive SIL. The proposal from heavy industries ministry went through smoothly, marking the first strategic sale in UPA's tenure since 2004. The proposal elicited immediate response with Atul Auto, a Rajkot-based three-wheeler maker, expressing interest.
Market watchers say others such as Bajaj Auto and Mahindra & Mahindra may also eye the PSU.
Sources said following the unobstructed nod, heavy industries minister Praful Patel informed the PM-chaired session that he wanted to place on record the reservations expressed by Uttar Pradesh Congress chief Rita Joshi. Opposing the proposal, Joshi had told Patel that he should not accept the proposal in an election year, only to be told that it was way past the stage where it could be recalled. But the information about Joshi's resistance met with Cabinet's casual acknowledgement, sending SIL on the way to divestment. The Centre will now scout for a strategic partner which can turn around the company making three-wheelers to a successful two-wheeler manufacturer.
Joshi's concern appeared political, fearing that divestment could trigger fears among employees and provoke popular angst ahead of state elections.
The UPCC chief told TOI, "I spoke to Praful Patel when I came to know about the proposal being on the agenda. He promised to put my view before the Cabinet." The poll season, for which Congress sounded the bugle at its two-day Varanasi conference which ended on Thursday, has often met with scepticism among voters. However, the government is sure that SIL needs a resourceful private giant for reviving the sick unit which has been incurring operational losses since 2002 and net losses since 2006.
The government justified it by saying, "This (losses) is mainly on account of its inherent inefficiency and low productivity as compared to other players in a highly competitive three-wheeler market. SIL also suffers disadvantage of its old plant, machinery, lack of technology, aging workforce, poor systems etc." But it assured that employees would continue to get salary support. SIL employs 1,255 persons though the strategic partner would offer VRS to 900 workers.
There have been two views in Congress about SIL's divestment, with a section feeling that successful stake sale could raise hopes about the permanently sick unit which could then be flagged as a success in the heart of the state up for polls. It would mark a businesslike intent for Congress, desperate to make its presence felt on Mayawati's turf.
Market watchers say others such as Bajaj Auto and Mahindra & Mahindra may also eye the PSU.
Sources said following the unobstructed nod, heavy industries minister Praful Patel informed the PM-chaired session that he wanted to place on record the reservations expressed by Uttar Pradesh Congress chief Rita Joshi. Opposing the proposal, Joshi had told Patel that he should not accept the proposal in an election year, only to be told that it was way past the stage where it could be recalled. But the information about Joshi's resistance met with Cabinet's casual acknowledgement, sending SIL on the way to divestment. The Centre will now scout for a strategic partner which can turn around the company making three-wheelers to a successful two-wheeler manufacturer.
Joshi's concern appeared political, fearing that divestment could trigger fears among employees and provoke popular angst ahead of state elections.
The UPCC chief told TOI, "I spoke to Praful Patel when I came to know about the proposal being on the agenda. He promised to put my view before the Cabinet." The poll season, for which Congress sounded the bugle at its two-day Varanasi conference which ended on Thursday, has often met with scepticism among voters. However, the government is sure that SIL needs a resourceful private giant for reviving the sick unit which has been incurring operational losses since 2002 and net losses since 2006.
The government justified it by saying, "This (losses) is mainly on account of its inherent inefficiency and low productivity as compared to other players in a highly competitive three-wheeler market. SIL also suffers disadvantage of its old plant, machinery, lack of technology, aging workforce, poor systems etc." But it assured that employees would continue to get salary support. SIL employs 1,255 persons though the strategic partner would offer VRS to 900 workers.
There have been two views in Congress about SIL's divestment, with a section feeling that successful stake sale could raise hopes about the permanently sick unit which could then be flagged as a success in the heart of the state up for polls. It would mark a businesslike intent for Congress, desperate to make its presence felt on Mayawati's turf.
Modern retail makes a big splash
MUMBAI: Modern retail has doubled its share to 10% of the Indian retail landscape in just three years. Its contribution has gone up from 5% in 2007 to 10% in 2010, according to internal estimates by the country's largest consumer products company, Hindustan Unilever (HUL). While this reduces the general trade pie to 90%, experts said general trade would continue to remain large.
In a presentation of investors, HUL said modern trade's presence in major cities like Hyderabad, Gurgaon, Bangalore and Chennai, is even higher, at an average of approximately 30% of the total retail pie. This, said marketers, is a pointer to a change in consumption pattern. "The contribution of modern trade to the overall retail pie especially in tier-1 towns has become extremely significant in the last couple of years. New categories like juices and mouthwashes are being discovered at a modern trade outlet, but that does not mean a family is not purchasing anything from its nearby general trade store," said Damodar Mall, president, integrated food strategy, Future Group, which runs the country's biggest modern retail store Big Bazaar.
Modern trade, said Mall, exists more like a first port of call for consumers where they experiment with new products. As demand increases, it positively impacts general trade as well. The platform is being used by FMCG companies for demand creation, especially for new categories. "Earlier a consumer would switch from Lux soap to Dove in a longer period of time. Today, such a transition takes place in six months with the help of television and modern trade and it helps the company, modern trade and general trade all at the same time," said Mall.
FMCG companies are assiduously devising strategies for modern retail. HUL has begun to measure the health of its brands based on the market shares they have in modern retail, even though it continues to enjoy strong leadership positions in most of the categories in general trade as well. "It is heartening that our modern trade market shares are even higher than our shares in general trade across categories. We have grown share in 85% of our categories in modern trade in 2010 and also grown in aggregate share in modern trade over 2009," said Hemant Bakshi, executive director, sales and customer development, HUL.
HUL was one of the first FMCG companies to set up a dedicated modern trade account management team in 2003. It also ensures that its plans are aligned with customers' needs, besides investing in building people capabilities.
"We have leveraged Unilever's learnings from across markets and deployed the best-in-class practices that we use globally. Our ambition is not only to be the largest supplier for modern trade but also to be the most preferred," said Bakshi.
Studies suggest that while a majority of consumers in metropolitan India are as global in orientation as those at the higher end of the consumption cycle, consumers residing in towns beyond metros are also increasingly opening up to spend for a better lifestyle. "As far as tier-2 and tier-3 towns go we have had strong acceptance through Big Bazaar even for value added products. In fact, modern trade helps bring about distribution in small places for products which did not exist there before," said Mall.
A PricewaterhouseCoopers survey estimates the size of the Indian retailing industry at $350 billion. "The Indian retailing industry is at an inflection point. It is set to enter a new growth trajectory owing to rising household consumption and the entry of corporate entities and global retailers," the report said. With the sector growing at 30-40% per annum, most global brands/retailers have evinced an interest in entering the market.
While the retail sector is yet to be liberalized, the government has taken a step in this direction by allowing a maximum of 51% equity participation by foreign companies in a joint venture with an Indian company.
In a presentation of investors, HUL said modern trade's presence in major cities like Hyderabad, Gurgaon, Bangalore and Chennai, is even higher, at an average of approximately 30% of the total retail pie. This, said marketers, is a pointer to a change in consumption pattern. "The contribution of modern trade to the overall retail pie especially in tier-1 towns has become extremely significant in the last couple of years. New categories like juices and mouthwashes are being discovered at a modern trade outlet, but that does not mean a family is not purchasing anything from its nearby general trade store," said Damodar Mall, president, integrated food strategy, Future Group, which runs the country's biggest modern retail store Big Bazaar.
Modern trade, said Mall, exists more like a first port of call for consumers where they experiment with new products. As demand increases, it positively impacts general trade as well. The platform is being used by FMCG companies for demand creation, especially for new categories. "Earlier a consumer would switch from Lux soap to Dove in a longer period of time. Today, such a transition takes place in six months with the help of television and modern trade and it helps the company, modern trade and general trade all at the same time," said Mall.
FMCG companies are assiduously devising strategies for modern retail. HUL has begun to measure the health of its brands based on the market shares they have in modern retail, even though it continues to enjoy strong leadership positions in most of the categories in general trade as well. "It is heartening that our modern trade market shares are even higher than our shares in general trade across categories. We have grown share in 85% of our categories in modern trade in 2010 and also grown in aggregate share in modern trade over 2009," said Hemant Bakshi, executive director, sales and customer development, HUL.
HUL was one of the first FMCG companies to set up a dedicated modern trade account management team in 2003. It also ensures that its plans are aligned with customers' needs, besides investing in building people capabilities.
"We have leveraged Unilever's learnings from across markets and deployed the best-in-class practices that we use globally. Our ambition is not only to be the largest supplier for modern trade but also to be the most preferred," said Bakshi.
Studies suggest that while a majority of consumers in metropolitan India are as global in orientation as those at the higher end of the consumption cycle, consumers residing in towns beyond metros are also increasingly opening up to spend for a better lifestyle. "As far as tier-2 and tier-3 towns go we have had strong acceptance through Big Bazaar even for value added products. In fact, modern trade helps bring about distribution in small places for products which did not exist there before," said Mall.
A PricewaterhouseCoopers survey estimates the size of the Indian retailing industry at $350 billion. "The Indian retailing industry is at an inflection point. It is set to enter a new growth trajectory owing to rising household consumption and the entry of corporate entities and global retailers," the report said. With the sector growing at 30-40% per annum, most global brands/retailers have evinced an interest in entering the market.
While the retail sector is yet to be liberalized, the government has taken a step in this direction by allowing a maximum of 51% equity participation by foreign companies in a joint venture with an Indian company.
Wednesday, May 18, 2011
Sensex up 112 points in opening trade
MUMBAI: The Bombay Stock Exchange benchmark Sensex recovered by over 112 points in opening trade on Thursday on fresh buying in metals, banking and oil and gas stocks, driven by a firming trend on other Asian bourses.
The 30-share barometer, which has lost nearly 445 points in the previous three sessions, rose by 112.25 points to 18,198.45 in the first few minutes of trade today.
In a similar manner, the wide-based National Stock Exchange Nifty index rose by 32 points to 5,452.60.
Brokers said the emergence of buying in heavy-weight stocks by funds as well as retail investors was triggered by a firming trend in other Asian markets following overnight gains in the US, which gave a boost to the trading sentiment.
In the Asian region, Hong Kong's Hang Seng index rose by 0.25 per cent, while Japan's Nikkei edged higher by 0.51 per cent in morning trade today. The US Dow Jones Industrial Average ended 0.65 per cent higher in yesterday's trade.
The 30-share barometer, which has lost nearly 445 points in the previous three sessions, rose by 112.25 points to 18,198.45 in the first few minutes of trade today.
In a similar manner, the wide-based National Stock Exchange Nifty index rose by 32 points to 5,452.60.
Brokers said the emergence of buying in heavy-weight stocks by funds as well as retail investors was triggered by a firming trend in other Asian markets following overnight gains in the US, which gave a boost to the trading sentiment.
In the Asian region, Hong Kong's Hang Seng index rose by 0.25 per cent, while Japan's Nikkei edged higher by 0.51 per cent in morning trade today. The US Dow Jones Industrial Average ended 0.65 per cent higher in yesterday's trade.
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