Mumbai: The SENSEX opened firm in line with a smart rally in old economy stocks at early stages on the Bombay Stock Exchange (BSE) on June 3 on buying support from speculators and foreign institutional investors (FIIs).

The BSE sensitive index opened substantially higher at 3,162.27 as against a close of 3,125.73 on May 31 night, and later improved to further to a high of 3,185.57 before being quoted at 3,154.98 at 10:45 hours (IST).

Despite FIIs heavy net sales of about Rs 260 crore during four sessions last week and consistent selling from domestic institutions led by the Unit Trust of India (UTI), the market seemed to have made a strong turnaround following a statement by Defence Minister George Fernandes that India would not be "impulsive" in its standoff with Pakistan even as shelling in Indo-Pak borders continued on June 2 night.

Market sources said that FIIs were moderate sellers while UTI is believed to be cash- strapped at a time when couple of its monthly schemes is maturing next month.

PTI