The markets rewarded investors with a 4 per cent rise during the week ended April 20. The result season gave the markets much fodder to cheer about.
Much of this credit goes to the IT companies, which put aside all the worries of a slowdown. This started with Infosys, which posted better than expected numbers last week, to be followed by other tech companies.
On Monday, India's largest software exporter TCS posted another quarter of good sales and profit growth. The company beat all the estimates. For the full financial year 2006-2007, the company posted a 41 per cent growth in software revenues to Rs 18,685 crore and 42 per cent rise in net profit to Rs 4213 crore. The company's growing revenues from North American and European operation make it less vulnerable to a weakening dollar. The Sensex rose 2.32 per cent or 312 points to close at 13,695 points and the Nifty rose 96 points to close at 4,013. Technology stocks continued to do well even as the rupee hit the nine -year high. Wipro was the top gainer of the day in the IT pack, rising 3.3 per cent. Cement stocks also gained smartly. ACC was up 5 per cent, while Grasim Industries and Gujarat Ambuja were up 3 per cent each. Suzlon Energy rose 7 per cent on reports that the company has signed an agreement with a US company to set up power plants. Reliance Industries, meanwhile, reached an all time high of Rs 1,465.
On Tuesday, the Sensex was down 88 points while Nifty shed 28 pints to close at 13,607 and 3,985 points, respectively. The main target of the sellers was the technology, which had been rising for the past two sessions. Satyam Computers fell 5 per cent to close at Rs 456. Infosys and Wipro closed 2 per cent down to settle at 2,081 and Rs 574, respectively.
Other laggards on the Sensex included Tata Motors, Maruti Udyog, Cipla, Hindalco and Tata Steel. However cement continued to surge on the expectation of good quarterly numbers. UTI's Gold ETF, which had collected Rs 150 crore during its new fund offer, got listed on Tuesday. On Wednesday, though Sensex and Nifty rose, the trading activity was lacklustre. The benchmark Sensex breached the 13,700 mark intra day, before closing at 13,673 points. HCL Technologies was among the star performers as it had announced robust numbers the previous day after market hours. The scrip rose 7.4 per cent to close at Rs 323. Other stock which witnessed a notable rise was GTL. The stock rose 17 per cent in a day to close at Rs 164.10. GTL is an IT player specialising in network services and infrastructure segment. Among the sectoral indices, BSE Healthcare was the top gainer rising around 1.5 per cent. Sterling Biotech rose 15 per cent to close at Rs 166.65 and Glenmark Pharma closed at Rs 663.55, up 3 per cent. Cement stocks were a mixed lot. While ACC rose, Grasim, Gujarat Ambuja and JP Associates ended in the negative category. FIIs were net buyers to the tune of Rs 648 crore and mutual funds bought securities worth Rs 18 crore.
The markets ended down on Thursday, taking cues from the global markets. The Sensex ended 0.3 per cent lower at 13,619 points. The Nifty shed 14 points to close at 3,997.65 points. Most of the other Asian markets were also in red, led the China. The fall was also attributed to the unwinding of yen carry trades, following the strengthening of Japanese yen against the US dollar. Banking stocks became the highlight of the day with SBI, Punjab National Bank, ICICI Bank, Andhra Bank all witnessing a rise. ACC fell by 3.4 per cent to close at Rs 788 on fears of rising freight cost and tax provisions eating into its operating profits.
The last day of the week was soothing for investors as strong numbers posted by IT majors- Satyam and Wipro supported the markets. The Sensex and Nifty were up 2 per cent each to close at 13,897 and 4,083.55 points, respectively. Added to this was the rebound in the Asian markets. Even the rise in inflation figures could not stop markets from recording sharp gains. Reliance Industries continued its run up to reach a life-time high of Rs 1,545 intra day, before finally closing at Rs 1,541.25. In fact, its share price surged 9.26 per cent during the week.
Reliance Communications also had an impressive run during the week, as it surged 8.28 per cent to close at Rs 456.40.