Market recovers as Infosys spurts

The key indices, which hovered in the negative zone earlier, moved into positive territory in the mid-morning trade. IT stocks clocked smart gains after Infosys reported decent Q4 March 2008 results. But banking stocks struggled to make headway into the positive territory. Asian markets, which opened before Indian markets, were mixed.




At 11:20 IST, the 30-share BSE Sensex was up 4.80 points or 0.03% at 15,812.44. The index gained 36.57 points at session’s high of 15,844.21, hit in the mid-morning trade. The Sensex slipped 234.61 points at day’s low of 15,573.03, hit in early trade.

The S&P CNX Nifty was up 13.45 points or 0.28% at 4791.25.

The BSE Mid-Cap index was up 0.44% at 6,551.91 and the BSE Small-Cap index was up 0.48% at 8,120.45.




The market breadth was strong: on BSE, 1198 stocks gained, 928 stocks declined and 56 stocks were unchanged.

India’s second largest software exporter by sales Infosys Technologies rose 3.56% at Rs 1473.10 after the company reported 1.46% rise in consolidated net profit to Rs 1249 crore on a 6.34% growth in revenue to Rs 4542 crore in Q4 March 2008 over Q3 December 2007.




Infosys has given guidance of a between 16.3% to 18.3% growth in earnings per share (EPS) to between Rs 92.32 to Rs 93.92 for the year ending March 2009 over the year ending March 2008. It has given guidance of a between 19.2% to 21.1% growth in revenue to between Rs 19894 crore to Rs 20214 crore for the year ending March 2009 over the year ending March 2008

As per US GAAP, Infosys has given guidance of a 16.7% to 18.7% growth in earnings per American Depository Shares at between $2.31 to $2.35 for the year ending March 2009 over the year ending March 2008. It has given guidance of a between 19% to 21% growth in revenue as per US GAAP to between $4.97 billion to $5.05 billion for the year ending March 2009 over the year ending March 2008

The BSE IT index was up 3.35% at 3,782.06. TCS (up 4.11% at Rs 945.50), I-Flex Solutions (up 3.10% at Rs 1124), HCL Technologies (up 2.95% at Rs 237), Satyam Computer (up 2.37% at Rs 443.45) and Wipro (up 2.39% at Rs 415.75), edged higher.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries fell 1.30% at Rs 2516.85.




The BSE Bankex was down 1.10% at 7,813.86. HDFC Bank (down 2.64% at Rs 1292), Centurion Bank of Punjab (down 2.33% at Rs 41.85), Kotak Mahindra Bank (down 1.48% at Rs 629.40), Axis Bank (down 1.27% at Rs 751), and State Bank of India (down 0.87% at Rs 1653.35), slipped.

India’s largest private sector bank by assets ICICI Bank was down 1.40% at Rs 777.40.

The BSE Metal index was down 1.03% at 13,823.12. Steel Authority of India (down 1.88% at Rs 159.25), Gujarat NRE Coke (down 1.65% at Rs 154.88), Ispat Industries (down 1.38% at Rs 28.50), Hindalco Industries (down 1.84% at Rs 174), National Aluminum Company (down 1.27% at Rs 416), Sterlite Industries (down 1.16% at Rs 782.50) and Tata Steel (down 0.72% at Rs 687.25), declined.

Among the side counters, MMTC (up 10% at Rs 26,847.80), Piramal Healthcare (up 6.24% at Rs 327), United Phosphorus (up 5.15% at Rs 310.45), Gijarat Minerals Development (up 4.87% at Rs 333) and Deccan Aviation (up 4.33% at Rs 133.80), edged higher.

Brokerage firm Motilal Oswal Financial Services soared 4.96% at Rs 690.10 after the firm said its board will meet on 21 April 2008 to consider the subdivision (split) of the equity shares of the company.




Automobile tyres maker JK Tyre & Industries spurted 6.36% at Rs 123.75 after the firm on Friday, 11 April 2008 announced the acquisition of a $200 million Mexican tyre-producing company Tornel for Rs 270 crore.

Anil Dhirubhai Ambani-controlled Reliance Power moved up 3.53% at Rs 374.40 after the Reserve Bank of India (RBI) reportedly approved a proposal by the company to raise $2 billion (about Rs 8,000 crore) for its Sasan ultra mega power project.

New age lender Yes Bank rose 1.03% at Rs 162.45 on reports the bank plans to raise $300 million (about Rs 1,200 crore) by December for its expansion plans.




Asian markets were trading mixed today, 15 April 2008 after a sell-off on Monday, 14 April 2008. Key indices in Taiwan, Singapore and Japan were up 0.30% to 0.74%. However, indices in South Korea, Hong Kong and China were down 0.05% to 1.04%.