Financial Daily from THE HINDU group of publications
Sunday, Apr 14, 2002

Investment World
Features
Stocks
Port Info
Archives

Group Sites

Investment World - Stock Markets
Markets - Commentary


Techs keep Sensex in positive zone

Krishnan Thiagarajan

THE firming up of prices in the technology sector, specially frontline stocks helped keep the BSE Sensex in the positive territory. The BSE Sensex appreciated by 10.33 points to close the week at 3510.90 points. The trigger for the technology stock rally was the announcement of the management guidance by Infosys Technologies.

For the analyst community and market observers who were speculating on the revenue guidance of 15-20 per cent for 2002-03, there were hardly any surprises in store. Infosys announced that its revenues would grow at 18-22 per cent and the per share earnings at 16-20 per cent for 2002-03. Even though Infosys indicated that the technology spending was likely to be flat in 2002, decision cycles remained elongated and client ramp up was slow, the firm guidance from Infosys proved to be good enough for the market players to spark a rally. Secondly, the fourth quarter and full year performance were in line with market expectations. Some of the second rung stocks such as Mastek, Hinduja TMT and MphasiS BFL soared on good performance and a healthy revenue guidance for the future in some cases.

Among the other gainers were Digital GlobalSoft and VisualSoft Technologies, KLG Systel, Kale Consultants, Polaris Software, SSI, Infotech Enterprises, NIIT and Aftek Infosys.

Among non-technology stocks, the major gainers during the week were Tata Engineering, Ashok Leyland, Tata Steel, IPCL, Shipping Corporation of India and Dr. Reddy's Laboratories. As the Supreme Court ordered the introduction of the CNG buses in Delhi, both the HCV / LCV majors, Tata Engineering and Ashok Leyland rallied during the week.

The Tata Engineering stock was also buoyant on account of the strong sales of the Indica car and the general domestic sales for the March quarter. The IPCL stock remained active on disinvestments hopes and the withdrawal of a major excise claim against the company. The Tata Steel stock appreciated last week on the back of a technical agreement signed with the two international steel majors - Arcelor and Nippon Steel Corporation for the manfacture of high quality steel sheets for the automobile industry.

After witnessing a bull run for the past few months, the PSU stocks lacked lustre during the week as some profit booking opportunities began to emerge in stocks such as GAIL, Engineers India, Neyveli Lignite and Hindustan Zinc However, some of the high profile petroleum stocks continued to gain value.

International markets: The jitters over the performance of technology majors such as Cisco, IBM and Intel reverberated across the market, with both Dow and Nasdaq ending the week 0.8 per cent down at 10190.82 and 1756.19 points. The US markets were also bracing up for the earnings season which is expected to be a rough one, with a few nasty surprises along the way. Specially, any bad news from the technology sector is leading to the stocks getting pummelled mercilessly. The Dow and the Nasdaq closed lower for the fourth and fifth successive week in the run-up to the earnings season.

Send this article to Friends by E-Mail

Stories in this Section
Tea — pale and watery


Tea: Positive policy changes
So, what's for tea?
Coffee: Brewing still
`We want to deliver a better mix' -- — Mr P. T. Siganporia, Deputy Managing Director, Tata Tea
Uneven tax field for domestic manufacture
Mastershare 86: Hold/Avoid fresh exposures
Sundaram Bond Saver: Invest
UTI Services Fund: Cut exposures and book profits
Pioneer ITI FMCG: Pare exposures
MIP '97: Take cash, avoid rollover
Focussing on theme funds
Warrants from UTI
Wockhardt: Buy
Infosys: Sell now and buy at lower levels
MphasiS BFL: Sell/Buy on declines
Unichem Lab: Book profits early
Swaraj Mazda: Hold
TNPL: Hold
US tightens visa rules
Transit visa on Air France
Medium-size software companies -- Exaggerated valuations
Frontline software companies -- Lessons from the returns
Endowment assurance policies -- Rest assured, with caution
Techs keep Sensex in positive zone
IPCL moves up on divestment hopes
Positive trend in Sterlite Optical
Nasdaq at crucial juncture
Bonds carry downside bias
Volumes decline on bourses
Interest wanes on index puts
Reliance Industries remains active
Options help guide
Futures guide
Revolve with Amex
Krishna Bhagya Jala Nigam: Invest (Medium-to-high risk)
TVS Srichakra: On a smooth ride
Income received outside India
Two-wheeler market: Gathering speed
UTI's assured return schemes -- Hardly reassuring?
Investing abroad: Sensible restriction on mutual funds
Does investing abroad generate higher returns?
It Adds Up!


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line