Infosys results upset BSE Sensex momentum

Mumbai, Oct 11: The Bombay Stock Exchange Sensitive Index (Sensex) lost the definitive momentum it gained after Infosys reported net profit of Rs 929 crore for Q2 September 2006, as selling pressure dwarfed the heavy weights in Metals and Auto sector in the last one hour of trade to close down by 10.29 points at 12,446.72 The sensex today in its upward surge touched a high of 12,514.18, and a low of 12,301.51 points, with a swing of 212.67 points. The volatility however was marked in the later part of the trading as traders lost confidence in midcaps stocks in the metals, Auto and Oil&Gas sector.

BSE in the day of selling clocked a turnover of Rs 3674.23 crore today.

The breadth too turned negative with 1690 declines as against 817 advances out of total 2564 scrips that traded the BSE counters.

Earlier, the highlight of the day was Infosys, which beat the industry expectations with its Q2 financial results, also as the US economy is declining. Infosys realised net profit of Rs 929 crores and the consolidated revenue of which rose 50.4 per cent to Rs 3,451 crore from Rs 2,294 crore. The core operating profit margin (OPM) has inched ahead to 32.1 per cent from 31.9 per cent. On a sequential basis, OPM has risen from 29.5 per cent of Q1 June 2006.

Infosys today revised upwards its EPS and revenue growth guidance for FY 2007 (year ending 31 March 2007). The company has forecast revenue of between Rs 13,853 crore and Rs 13,899 crore for FY 2007, transforming into projected year-on-year growth of 45.5 - 46 per cent. EPS for FY 2007 is forecast at Rs 66, which transforms into a projected year-on-year growth of 46.6 per cent.

The Infosys effect was felt in other IT and Technology stocks too.

The IT sector was up by 2.96 per cent and Technology stocks were up by 1.56 per cent.

However the rumblings were not noticed in other sectors which fell on pessimism amongst the traders before the results are finally out in each and every sector, felt the experts.

The true picture will be available at the end of the month, they added.

Metals today dipped by 1.73 per cent, as Hindalco took the beatings and amongst the midcap stocks the Bank of Maharshtra, Moser Baer and GE Shipping were all down in the red.

The major gainers on the BSE-30 index were Infosys up by 3.95 per cent to Rs 1,981.35, TCS up by 3.33 per cent to Rs 1,045.00, HDFC bank up by 2.77 per cent to Rs 964.95, Satyam computers up by 1.89 per cent to Rs 414.95, HDFc up by 1.78 per cent to Rs 1439.65, Wipro up by 1.73 per cent to Rs 528.90, Bharti Airtel up by 1.02 per cent to Rs 473.20 and ITC up by 0.32 per cent to Rs 185.70.

Besides the losers were Tata motors down by 3.38 per cent to Rs 880.90, Gujarat Ambuja down by 2.64 per cent to Rs 119.90, Ranbaxy down by 2.46 per cent to Rs 412.70, Hindalco down by 2.39 per cent to Rs 171.30, Tata Steel down by 2.12 per cent to Rs 506.80, State Bank Of india down by 2.05 per cent to Rs 1,004.90, Maruti down by 1.91 per cent to Rs 934.35, reliance Communications down by 1.82 per cent to Rs 338.00, ACC down by 1.75 per cent to Rs 970.80 and L&T down by 1.72 per cent to Rs 1,258.55.

UNI

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