Markets strengthen after some relapse

With no definite trend in the Asian markets, which were trading mixed, the Sensex moved between positive and negative in opening trade. IT shares were subdued due to the rupee’s surge over the past two days.The market had opened positive but had soon slipped into the red. It came off the lower level later.

At 12.50 pm nifty is trading 12 points up at 3709,while the sensex is trading 67 points up at 12773. ICICI Bank,ITC,Reliance Energy and Hero Honda are the top gainers on the sensex and HDFC,TCS and Ranbaxy Labs are the top losers. Apart from the above mentioned Jet airways and PNB are the top gainers on the Nifty 50 index.

The Fed's policy-making Federal Open Market Committee began its two-day meeting on Tuesday. The Fed is expected to hold its benchmark federal funds rate steady at 5.25%, but investors will focus on its statement on the outlook for the economy and future interest rate policy.

The undercurrent on the bourses remains cautious due to high inflation and rising interest rates. Strong industrial production data released early last week makes a strong case for the Reserve Bank of India (RBI) to raise interest rates at its annual policy review for FY-2008 on 24 April 2007. Industrial output rose 10.9% in January 2007 from a year earlier. The wholesale price index rose 6.46% in the 12 months to 3 March 2007, up from the previous week's annual increase of 6.10% due to higher edible oil and naphtha prices.