Sensex surges by 528 points during week

Mumbai, Apr 14: The markets settled with gains for the week, after posting losses for the previous two weeks, as buying resumed, after official data revealed a decline in inflation, firm global markets and steady industrial production data.

The BSE 30-scrip Sensex surged 528 points (4.11 per cent) for the week ended April 13 to 13,384.08, while the S&P CNX Nifty Index gained 165 points (4.43 per cent), to end at 3,917.35.

The week began on a highly bullish note, with the Sensex vaulting 321.66 points to settle at 13,177.74. A combination of factors like declining crude oil prices, firm global markets and a report that Indian corporates remain bullish regarding the growth prospects boosted domestic bourses.

Shares from metal, FMCG, IT, cement, banking, telecom and auto sectors edged higher.

The barometer index rose a marginal 11.80 points, a day later, to settle at 13,189.54, after remaining highly volatile throughout the day.

On April 11, the Sensex settled with a loss of 6.30 points at 13,183.24, as selling began in the latter half of the day's trading session. However, losses were marginal. While metal and capital goods lifted the market, banking and IT shares pulled it lower.

The BSE lost further 69.43 points to 13,113.81, the next day, as caution gripped the bourses before IT bellwether Infosys' results. A weak trend in global markets also pulled the domestic bourses lower.

The 30-share BSE Sensex jumped 270.27 points, to 13,384.08, on April 13, powered by IT bellwether Infosys, whose results and guidance put street estimates to shame. Stocks from the auto and banking sector had also joined in the rally.

Infosys Technologies advanced 4.75 per cent to Rs 2087.60. The IT bellwether also reported 16.3 per cent sequential growth in net profit for Q4 March 2007, at Rs 1144 crore as compared to Rs 983 crore in Q3 December 2006. The net profit for Q3 March 2007, was boosted by extra-ordinary income of Rs 124 crore, arising from a reversal of tax provisions. Revenue rose 3.2 per cent to Rs 3772 crore from Rs 3655 crore in the previous year's quarter.

As per Indian GAAP, Infosys predicted an earning per share (EPS) of Rs 80.29 to Rs 81.58 for FY 2008, a growth of 20-22 per cent, as compared to an EPS of Rs 66.86 in FY 2007. The company had forecast 22.6-24.6 per cent growth in revenue for FY 2008, between Rs 17,038 crore and Rs 17,308 crore. Infosys has considered the rupee-dollar conversion rate at 43.10.

The Infosys' effect boosted frontline IT pivotals. Satyam Computer gained 5.60 per cent to Rs 481.55 and TCS rose 5.53 per cent to Rs 1262.65.

Reliance Communications advanced 6.24 per cent to Rs 421.50. RCL added 1.2 million new wireless subscribers in March 2007. The company said its ARPU (average revenue per user) was expected to increase by 12 per cent, as a result of the re-verification exercise, making it one of the top three players in India in terms of ARPU.

India's largest private sector steel manufacturer Tata Steel surged 9.79 per cent to Rs 511.25. Tata Motors advanced 5.83 per cent to Rs 726.

Suzlon Energy jumped 13.78 per cent to Rs 1104.30. It has raised the bid for acquiring the German wind-turbine maker. Suzlon Energy also acquired 6,27,000 shares, constituting 7.7 per cent of the share capital of REpower at a price of up to Euro 150 per share. As a result of the acquisition, the voluntary offer for acquiring up to 100 per cent stake in Repower stands revised upwards, to Euro 150 per share.

On April 11, Gremach Infrastructure Equipments&Projects settled at Rs 83.95, a discount over the IPO price of Rs 86. The stock debuted at Rs 92 on BSE, hit a low of Rs 80.70 and also a high of Rs 100. The counter clocked high volumes of 1.03 crore shares on BSE, on that day. The company had priced its IPO at the higher end of the revised price band of Rs 72-Rs 86 per share.

Real estate developer Orbit Corporation settled at Rs 127.95 on BSE on April 12. The scrip debuted at Rs 90 compared to the IPO price of Rs 110. It also hit a low of Rs 90 and a high of Rs 137. As many as 1.44 crore shares changed hands in the counter on BSE on that day.

On April 13, credit rating agency ICRA settled at a huge premium of Rs 797.60 on BSE. ICRA's issue price was Rs 330 per share. The stock, listed on BSE at Rs 550, was also the day's low. The debuting stock then shot up to a high of Rs 880.10. As many as 1.24 crore shares changed hands in the ICRA counter on BSE on the day of debut itself.

India's wholesale price index, rose 5.74 per cent in the 12 months on March 31, was lower than previous week's increase of 6.39 per cent, data showed on Friday. The figure was below forecast of an annual 5.81 per cent in an analyst poll. The annual inflation rate was 3.98 per cent during the corresponding week of the previous year.

Also, on April 12, the European Central Bank (ECB) kept key interest rates unchanged, as expected, in Frankfurt, but ECB President Jean-Claude Trichet signaled an increase in June. The ECB's 19-member governing council decided to hold interest rates unchanged after raising its main refinancing rate to 3.75 per cent from 3.50 per cent on March 8.

However, Mr Trichet signaled another rate rise due to inflation risks. His remarks were in line with analysts' expectations that another rate hike was likely in June. He reiterated that the 13-nation Euro region is in a period of robust growth and the central bank's monetary policy remains ''on the accommodative side''.

Mr Trichet warned that higher oil prices and a hike in wages can pose risks to price stability. Euro region inflation stood at 1.9 per cent in March, well within ECB's 2 per cent target.

In an important development this week, more than 500 member brokers have agreed to sell a part of their holdings in the BSE to bring it down to 49 per cent, as per the demutualisation guidelines.

The BSE also announced receiving overwhelming interest from investors around the globe and the country, to purchase the remaining 41 per cent stake. Two foreign exchanges, Deutsche Borse and Singapore Stock Exchange (SGX), picked up 5 per cent each in Asia's oldest exchange earlier this year.

As per data released on April 11, industrial production rose 11 per cent in February from a year earlier, slightly lower than upwardly revised annual growth of 11.4 per cent in January.

Manufacturing production, which represents more than 75 per cent of industrial output, rose 12.3 per cent in February from a year earlier, compared with a revised 12.1 per cent annual growth in January.

The Bank of Japan kept interest rates unchanged for a second month after consumer prices fell and recent data signaled US economic growth may slow. Governor Toshihiko Fukui and his policy board colleagues voted unanimously to hold key overnight lending rate at 0.5 per cent, the lowest among major economies, the bank said in a statement in Tokyo on April 10.

UNI