The battered stock market found a solace in IT bellwether Infosys
Technologies' good future outlook. That triggered a broad-based
rally in IT stocks. Healthcare and oil & gas stocks marched ahead
as well. Ranbaxy Laboratories was the top gainer from the Sensex
pack.
The 30-share BSE Sensex rose 346.02 points or 2.19% at 16,153.66.
The index gained 441.82 points at session's high of 16,249.46, hit
in mid-afternoon 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 101.85 points or 2.13% at 4879.65. Nifty
April 2008 futures were at 4914.90, at a premium of 35.25 points as
compared to spot closing of 4879.65.
The BSE Mid-Cap index underperformed the Sensex, gaining 1.24% at
6,604.42. The BSE Small-Cap index underperformed the Sensex,
gaining 1.52% at 8,204.39.
The market breadth was strong: on BSE, 1784 stocks gained, 875
stocks declined and 50 stocks were unchanged.
BSE clocked a turnover of Rs 5827 crore as against the turover of
Rs 5,586.86 crore on Friday, 11 April 2008.
The NSE's futures & options (F&O) segment turnover was Rs 46369.75
crore, which was higher than Rs 41003.92 crore on Friday, 11 April
2008.
India's second largest software exporter by sales Infosys
Technologies rose 6.21% at Rs 1510.75. At the time of announcing Q4
March 2008 results, Infosys management today said there are
significant growth opportunities for the company in the medium to
long term. The company, however, may face short-term challenges due
to global economic uncertainties. Another major booster for the
counter was the company's announcement that it has decided to
increase the dividend payout ratio to up to 30% of net profits from
the current year from 20% thus far
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
Infosys 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' strong outlook comes at a time when there has been a gloom
surrounding India Inc's earnings due to mark-to-market losses on
forex derivatives, rise in input costs and due to concerns about
delays in project execution for the capital goods sector.
A steep decline in the value of the US dollar against the Japanese
Yen and the Swiss Franc hit Indian corporates which have used these
two currencies (Yen and Franc) extensively to swap their rupee
denominated debt. As per estimates by a domestic brokerage, the
mark-to-market losses of corporate India under forex derivatives
could be around $4 billion.
The BSE IT index outperformed the Sensex, gaining 5.55% to
3,862.48. TCS (up 7.37% at Rs 975.10), Mphasis (up 7.10% at Rs
226.95), HCL Technologies (up 6.78% at Rs 245.80), Wipro (up 4.52%
at Rs 424.65), and Satyam Computer (up 4.35% at Rs 452.05), soared.
The BSE Healthcare index outperformed the Sensex, gaining 3.32% to
4,049.35. Orchid Chemicals & Pharmaceuticals (up 16.50% at Rs
288.10), Glenmark Pharmaceuticals (up 5.97% at Rs 533.80),
Wockhardt (up 5.38% at Rs 299.90), Bilcare (up 4.81% at Rs 950.35)
and Dr Reddy's Pharmaceuticals (up 4.22% at Rs 615.95), moved up.
India's largest drug maker by sales Ranbaxy Laboratories surged
8.62% to Rs 481.80 after the company said Anglo-Swedish drugmaker
AstraZeneca had settled US patent litigation against the company
over its top-selling drug, ulcer pill Nexium.
The BSE Oil & Gas index outperformed the Sensex, gaining 2.77% to
11,333.93. Essar Oil (up 8.65% at Rs 261.95), Reliance Natural
Resources (up 6.61% at Rs 105.70), Reliance Petroleum (up 4.31% at
Rs 189.80), BPCL (up 3.84% at Rs 408.50) and ONGC (up 2.45% at Rs
1,024.80), soared.
India's largest private sector firm by market capitalization and
oil refiner Reliance Industries rose 2.30% at Rs 2608.80.
The BSE Bankex underperformed the Sensex, gaining 1.28% to
8,002.40. Kotak Mahindra Bank (up 5.97% at Rs 677), Union Bank (up
2.85% at Rs 155), Punjab National Bank (up 2.27% at Rs 519.45),
Axis Bank (up 1.73% at Rs 774.90) and State Bank of India (up 0.55%
at Rs 1,677.05), flared up.
India's largest private sector bank by assets ICICI Bank rose 2.34%
at Rs 806.90.
New age lender Yes Bank rose 3.39% at Rs 166.25 on reports the bank
plans to raise $300 million (about Rs 1,200 crore) by December for
its expansion plans.
Brokerage firm Motilal Oswal Financial Services soared 4% at Rs
683.80 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 4.34% at Rs
121.40 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 6.37% at
Rs 384.35 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.
Bhagyanagar India, which makes non-ferrous metal products, surged
16.71% to Rs 45.75 after the company said it has scheduled a board
meet on 22 April 2008 to consider buy back of equity shares.
Cement maker Grasim Industries rose 0.11% to Rs 2553.45 after the
company said it has increased its stake from 25% to 45% in AV Cell
Inc, a joint venture company in Canada for a total consideration of
around Canadian dollar 6 million.
Orchid Chemicals & Pharmaceuticals clocked the highest turnover of
Rs 453.41 crore on BSE. Reliance Industries (Rs 373.44 crore),
Reliance Petroleum (Rs 299.24 crore), Reliance Natural Resources
(Rs 233.98 crore) and Reliance Capital (Rs 196.31 crore), these
were the turnover toppers on BSE in that order.
Reliance Natural Resources reported the highest volume of 2.27
crore shares on BSE. Orchid Chemicals & Pharmaceuticals (1.65 crore
shares), Reliance Petroleum (1.59 crore shares), Sita Shree Food
Products (1.42 crore shares) and Kaashyap Technologies (1.33 crore
shares), these were the volume toppers on BSE in that order.
Asian markets, which were mixed earlier, were mostly in green. Key
indices in China, Hong Kong, Japan, Singapore, and Taiwan were up
by between 0.36% to 1.57%. However, South Korea's Seoul Composite
index was down 0.26%. European markets, which opened higher,
however, slipped into red after positive start. Key indices in
Germany and France were down 0.04% to 0.12%. However, UK's FTSE 100
was up 0.86%.
US markets slipped yesterday, 14 April 2008, after Wachovia
declared an unexpected first quarter loss. On the other hand, a US
government report declared better-than-expected growth in retail
sales. The Dow Jones industrial average slipped 23.36 points, or
0.19%, to 12,302.06. The S&P 500 index was down 4.51 points, or
0.34%, to 1,328.32, and the Nasdaq Composite index dropped 14.42
points, or 0.63%, to 2,275.82. US markets had suffered sharp losses
on Friday, 11 April 2008.
Besides concerns about corporate earnings, moderation in economic
growth, prospects of further rise in interest rates and fears of
funding crunch for some corporates amid credit crisis in the United
States, spooked the Indian market in the past three months. Fears
of redemption pressure for mutual funds following steep market fall
looms large on the bourses.
Sensex has gained 1344.17 points or 9.07% from a low of 14,809.49
on 17 March 2008. It is off 5,053.11 points or 23.82% from a record
high of 21206.77 hit on 10 January 2008.
No comments:
Post a Comment