MUMBAI (Thomson Financial) - Indian shares opened slightly higher today as dealers welcomed the listing of state-run power transmission company Power Grid Corp of India Ltd, saying the stock has 'good potential.'
At 0500 GMT, the Bombay Stock Exchange's Sensex was 50.19 points or 0.28 pct higher at 17,827.33, while the National Stock Exchange's S&P CNX Nifty was unchanged at 5,208.55 points.
Power stocks have been leading the Sensex in the recent past and the Power Grid listing is expected to further boost sentiment in the sector. However, dealers expect a minor short-term correction in these stocks as the market adjusts to accommodate the new listing.
The Power Grid stock listed at 85 rupees against the issue price of 52 rupees per share and raced to 109 rupees within minutes of opening. Dealers have tipped the stock to outperform the market.
In other news, Bajaj Auto was leading the Sensex today amid news the company plans to double its global market share within three years. The stock was up 1.8 pct at 2,626 rupees.
Banking stocks were also up after reports killed the recent talk that the Reserve Bank of India may hike the cash reserve ratio.
However, the information technology sector's woes were unabated after the rupee touched a nine-year high yesterday of 39.46 to the US dollar. A strong rupee erodes the value of software firms' exports.
Elsewhere, the Dow Jones Industrial Average closed up just six points overnight while major Asian markets were higher today. TFN.newsdesk@thomson.com apm/ran COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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