Sensex pares gains along with Satyam, Wipro - July 18, 2008

The benchmark indices Sensex and Nifty have shed most of their morning gains due to heavy selling in IT majors and strong resistance encountered by a few old economy blue chip stocks at higher levels

While the Sensex, which rose to a high of 13,274.72 earlier this morning, is up with a gain of 0.31% or 40.67 points at 13,152.24, the Nifty, which has eased to 3950.60 from a high of 3991, is up just marginally (by 3.40 points) over its previous closing mark.

Satyam Computer Services Limited has posted a profit after taxation of Rs 5759.10 million for the quarter ended June 30, 2008 as compared to Rs 3891.40 million for the quarter ended June 30, 2007. Total Income has increased from Rs 18209.30 million for the quarter ended June 30, 2007 to Rs 25565.20 million for the quarter ended June 30, 2008.

The Group has posted a consolidated profit after taxation & minority interest of Rs 5477.00 million (as per Indian GAAP) for the quarter ended June 30, 2008 as compared to Rs 3783.20 million for the quarter ended June 30, 2007. Total Income has increased from Rs 18933.90 million for the quarter ended June 30, 2007 to Rs 26539.50 million for the quarter ended June 30, 2008.

The Satyam Computer Services stock has taken a severe beating this morning. The stock, which opened at Rs 422 and edged higher to Rs 429.85 in early trade, crashed to Rs 380.70 subsequently on selling pressure. At present, the stock is down with a loss of 7.35% at Rs 383.50.

Wipro Limited has posted a net profit of Rs 5460 million for the quarter ended June 30, 2008 where as the same was at Rs 6714 million for the quarter ended June 30, 2007. Total Income is Rs 48074 million for the quarter ended June 30, 2008 where as the same was at Rs 37768 million for the quarter ended June 30, 2007. Wipro has lost 5.8% at Rs 379.80.

Other IT majors in the Sensex, Infosys Technologies and Tata Consultancy Services, are also down in the red with sharp losses. While the former is down with a loss of 4.15% at Rs 1517, the latter has slipped by 3.65% to Rs 750.60.

Tata Steel (down 3.9%), ACC (down 2.15%) and Hindalco (down 1.1%) are the other major losers in the Sensex.

Ambuja Cements, Larsen & Toubro, Reliance Communications, Hindustan Unilever and Reliance Industries have lost 0.4% - 1%. Bharti Airtel is down with a small loss at Rs 748.35.

ICICI Bank rules firm with a sharp gain of 5.5%. HDFC is up by a little over 4.5%. HDFC Bank trades firm around Rs 1000 (up 4.2%).

Reliance Infrastructure, BHEL, State Bank of India, Jaiprakash Associates, DLF, ITC, ONGC and Tata Motors are up by 1% - 2.5%. NTPC, Mahindra & Mahindra and Grasim Industries also trade firm. Bharti Airtel and Maruti Suzuki are up marginally over their previous closing levels.

Indian Bank, Essar Shipping, Gujarat Petronet, Ansal Infrastructure, Nagarjuna Construction Company, Axis Bank, Yes Bank, Hindustan Construction Company, IDFC, Nagarjuna Fertilizers & Chemicals, GE Shipping, Adani Enterprises, HDIL, IndusInd Bank, Rolta India, Kotak Bank and Punjab National Bank have gained 3% - 7% today on strong buying support.

Biocon, Tata Chemicals, Sterlite Industries, Tech Mahindra, HCL Technologies, Cairn India, United Spirits, Educomp Solutions, Sesa Goa, Hindustan Zinc, i-Flex Solutions, Bajaj Hindustan and Piramal Healthcare are among the prominent losers from BSE 'A' Group.

Mkts: Satyam Jumps 6.5%; Sensex Up 231 Pts @ 12:03 Hrs

IT stocks, buoyed up by strong results from Infosys Technologies and HCL Technologies, are having a grand outing once again and mirroring the impressive show by key stocks from the sector, the BSE IT has now moved up by as much as 5.15%.

With key stocks from metal, realty, oil and banking sectors too posting sharp gains, the market remains high up in the positive territory around noon. Mid and small-cap stocks are also seen attracting strong buying enquiries. The market breadth remains highly positive with gainers outscoring losers by nearly 4 to 1 on BSE.

The Sensex, which showed some signs of fatigue and dropped down to around 16,240 in mid-morning trade, has resumed its journey up north again and is up with a sparkling gain of 231.08 points or 1.43% at 16,384.74 at present.

The National Stock Exchange's 50-stock Nifty index is up 1.11% or 54.15 points over its previous closing mark, at 4933.80.

After Infosys Technologies and Tata Consultancy Services' bull run yesterday, it is now the turn of Satyam Computer Services to hog the limelight in the IT space. At Rs 481.35, Satyam Computer Services is up by 6.5%. Infosys Technologies has gained 6.25% at Rs 1605. Wipro and Tata Consultancy Services have moved up by 3.1% and 2.05% respectively.

Reliance Energy has gained 3.3%. Hindalco is up by around 2.35%. Reliance Communications, Reliance Industries, DLF, Ranbaxy Laboratories, Tata Steel, ICICI Bank, Larsen & Toubro, State Bank of India and Bharti Airtel are also up with sharp gains. ITC, NTPC, Grasim Industries and Maruti Suzuki have chipped in with modest gains.

Bombay Dyeing, the biggest gainer among BSE 'A' Group stocks, is up by 13.3% at Rs 781.85. HCL Technologies has recorded a gain of 7.15% at Rs 263.30. Lanco Infratech, IVRCL Infrastructure, Rolta India, Jai Corp, MMTC, Reliance Industrial Infrastructure, HMT, Rashtriya Chemicals & Fertilizers, Bharat Electronics, Bhushan Steel, Sintex Industries, Tech Mahindra, Century Textiles, Aban Offshore and Sesa Goa are also up with impressive gains.

Market Gains Some Grounds

The market gains some grounds on the back of selective buying across the counters. However IT stocks remains in the lime light as most buying is seen from these baskets. Among the Sensex pack, 17 stocks are trading in green while 13 stocks are trading in red.

At 1.27PM, the BSE Sensex is trading higher by 170 points at 17,819 and NSE Nifty is trading up by 65.45 points at 5,202.90.

Losers from the BSE are puj Lloyd trading lower by (9.88%) at Rs398.50 followed by Asian Paints by (7.68%) at Rs1150, Mosear Baer by (7.25%) at Rs199, Orchid Chem by (6%) at Rs225.50, Lanco Infra by (5.61%) at Rs455.95.

The IT index is trading higher by 136.27 points at 3,846.38. Pushing it are Rolta India trading up by (8.08%) at Rs252.20 along with I-Flex up by (6.30%) at Rs1030, Satyam by (6.12%) at Rs413, Educomp Soln by (4.66%) at Rs3563.50, TCS by 4.31% at Rs913, Infosys by (4.13%) at Rs1566 and Tech Mahindra by (2.84%) at Rs712.20.

The Auto index is trading up by 66.33 points at 4,898.81 as Hero Honda is trading higher by 5.93% at Rs717.10 along with Tata Motors by 4.30% at Rs736.50, Bajaj Auto by 2.53% at Rs2415.15 and Maruti Suzuki by 1.21% at Rs859.

TCS is trading up by (4.31%) at Rs913 as the company''s subsidiary Diligenta has bagged a $200mn order from Canadian financial services major Sun Life Financial. The order is for outsourced services to the Canadian company''s UK operations and the services are expected to commence in May this year.

Tata Power is trading higher by (4.85%) at Rs1340 as the company has sought the regulator''s approval to hike its electricity tariff. If this approved, the consumers across Mumbai and rest of the State will have to shell out an additional 10%-15%in power tariff. Also, the company and IOC will soon form a joint venture to set up a 1,000 mw power project at Mirthapur in Orissa.