Sensex tests 6600: Action in telecom

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The Sensex is up 32.80 points at 6600.74 and the Nifty is up 8.10 points at 2077.70. Analysts expect the market to be volatile today due to F&O expiry. They say currently the cost of carry for January futures is on the higher side and one should stay cautious.

• Telecom stocks gain
• Metal shares firm
• Action in private banks

Most of the telecom shares including Bharti Tele Ventures, Tata Teleservices, MTNL, and VSNL have gained. The Finance Minister said that higher cap for FDI in banking and telecom is likely in the next few days.

Most of the private banks including Karur Vysya Bank, Laxmi Vilas Bank, Centurion Bank, Kotak Bank, IndusInd Bank, and Bank of Rajasthan have gained.

The BSE Metal Index has outperformed the other indices. It is up 0.63% at 6249.71 as most of the steel and aluminium stocks are firm.

Several cement stocks have also firmed up on expectation of an increase in offtake due to reconstruction after the Tsunami destruction.

Some weakness however is seen in the auto stocks as crude oil prices have moved up following explosions in the Saudi Arabian capital of Riyadh.

Bharati Shipyard has debuted at Rs 130 on the BSE, at 97% premium, and at Rs 121.05 on the NSE, at 83% premium to the issue price of Rs 66.

Several midcap textile, sugar, cement, and steel shares have gained.