Market Commentary

Market Activity: Share indices were down 1% with prospects of sharper losses reined by a relatively positive guidance for FY09 by Infosys Technologies. Prices were expected to tumble, as the markets opened after an extended weekend holiday, due to losses on Wall Street and Asia. Bank and metal shares were among the worst hit, with HDFC Bank and ICICI Bank down around 3% each. SAIL and Tata Steel were down 3% and 2%, respectively.

At 10.06AM, Sensex was at 15635.70, down 171.94 points or 1.1%. Nifty was at 4728.90, down 48.90 points or 1.1%

Infosys Technologies, up nearly 3%, was the top Nifty gainer after it said it sees 2008-09 (Apr-Mar) earnings per share at Rs 92.32-93.92. Other gainers included Ranbaxy Laboratories and Satyam Computer Services, up 1% each. HCL Technologies also rose 1% ahead of its Jan-Mar earnings today.

In the mid trading session, indices extended gains to rise over 2% led by surge in the technology sector after Infosys Technologies announced its Jan-Mar earnings. The market was down 1% in early trade. Short covering and firm opening in European markets helped. At 1.10PM., Sensex was at 16153.06, up 345.42 or 2.2%. Nifty was at 4887.55, up 109.75 points or 2.3%. CNX IT index was up 6%. Infosys Technologies and Tata Consultancy Services were up over 7% each, and Wipro rose 6%. Ranbaxy Laboratories surged 9% on entering into a settlement pact with AstraZeneca over the generic version of anti-ulcer drug Nexium, and amid talk it may launch an open offer for Orchid Chemicals. HDFC Bank down 2% was the worst hit on Nifty, while Ambuja Cements and Housing Development Finance Corp were down 1% each.

Share indices ended up 2% after bellwether Infosys Technologies posted Jan-Mar earnings broadly in line with market expectations. Infosys’ earnings triggered short covering. Gains in Europe and Asian markets also helped. Sensex ended at 16153.66, up 346.02 points, or 2.2%. Nifty closed at 4879.65, up 101.85 points, or 2.1%. Market had risen 3% earlier in the session. Shares of information technology companies were top gainers on Nifty. Infosys Technologies ended up over 6%, Tata Consultancy Services gained 8%, and Wipro rose 6%. HCL Technologies ended 7.7% up at Rs 248.10. Ranbaxy Laboratories, up 8.7% at Rs 483.50, was the top Nifty gainer after the company entered into a settlement pact with AstraZeneca over the genetic version of anti-ulcer drug Nexium. Zee Entertainment, down 4% at Rs 230.2 was the worst hit in Nifty. The company’s Jan-Mar net rose 49.3% to Rs 1.04 bn

Exchange Traded Volumes

Sector Activity :

Tech stocks witnessed up trend: Infosys closed up Rs 1510.40 with volumes of Rs 679.61 crs, Satyam closed up at Rs 451.25 with volumes of Rs 242.50 crs, TCS closed up at Rs 974.15 with volumes of Rs 137.63 crs, and HCL Tech closed up at Rs 245 with volumes of Rs 106.54 crs.

Pharma stocks ended up with exception: Orchid Chemical closed up at Rs 286.90 with volumes of Rs 820.36 crs, Ranbaxy closed up at Rs 481.80 with volumes of Rs 324.77 crs, Sun Pharma closed down at Rs 1269.40 with volumes of Rs 37.48 crs, and Glenmark closed up at Rs 532.70 with volumes of Rs 25.32 crs.

Banking stocks closed positive with exception: In the Public Sector SBI Bank closed up at Rs 1675.75 with volumes Rs 95.43 crs & Bank of India closed down at Rs 304.30 with volumes Rs 41.61 crs. In the Private sector ICICI Bank closed up at Rs 807.75 with volume of Rs 435.53 crs & Axis Bank closed up at Rs 773.40 with volumes of Rs 133.79 crs.

Auto Stocks showed buying opportunity: Tata Motors closed up at Rs 623.55 with volumes of Rs 40.82 crs & M&M closed up at Rs 623.45 with volumes of Rs 30.26 crs. While in the 2 wheeler segment stocks, Hero Honda closed up at Rs 740 with volumes of Rs 10.08 crs, Bajaj Holding closed up at Rs 698 with volumes of Rs 6.60 crs.

Cement Stocks ended in red: Ambuja Cement closed down at Rs 115.90 with volumes of Rs 77.52 crs, India Cem closed down at Rs 177.45 with volumes of Rs 22.47 crs, ACC closed down at Rs 813.55 with volumes of Rs 18.73 crs and Birla Jute closed down at Rs 194.65 with volumes of Rs 2 crs.

Nifty ended at 4880 up by 102 points

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