Mumbai, March 9 (IANS) Indian equities opened higher Wednesday after a patch up between two key allies in the United Progressive Alliance (UPA) government but fell sharply on little positive cues from the domestic and global economy.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened higher by 83.15 points at 18,522.80 points and shot up immediately to a high of 18,583.30 points, over the previous close at 18,439.65 points. The index was up 143.65 points then.

But subsequent profit taking pulled the key index down and some two hours into trading, it was ruling at 18,342.70 points, with a loss of 96.95 points, or 0.53 percent, data available with the bourse showed.

Only five out of the 13 sector-specific indices were ruling in the positive territory. Among the 30 Sensex stocks, 11 were in the green, while 19 others ruling in the red. The mid-cap and small-cap indices, though, were ruling marginally up.

The situation was similar at the National Stock Exchange (NSE) where the broader 50-share S&P CNX Nifty was ruling at 5497.80 points, with a loss of 23.00 points, or 0.42 percent.

Analysts said the markets had already discounted the political developments, where a significant announcement was made after the closing bell Tuesday.

The Congress party and its southern ally, the DMK, said they had reached a seat-sharing pact for the Tamil Nadu assembly polls next month after a three-day drama, which had triggered a major crisis for Prime Minister Manmohan Singh government.