BSE Sensex: Market opens on firmer grounds

Mumbai, Apr 16: The BSE Sensex today opened with a gain of 95.41 points at 13,479.49 from its last week's close of 13,384.08 points, buoyed by IT bellwether Infosys' strong guidance for the current financial year, prompting a gain in IT ADRs and north-bound Asian markets.

Among the broader markets, the Nifty Index also gained marginally by 3.15 points at 3,920.50 on the National Stock Exchange (NSE) from it's previous close of 3,917.35 points.

At the Bombay Stock Exchange (BSE), IT, telecom, banking and cement shares nudged higher. The market-breadth was strong.

Infosys' strong guidance for the current financial year in dollar terms, and a gain in IT ADRs last week boosted IT stocks for the second successive day. Wipro gained 3.4 per cent to Rs 587, Satyam Computer rose 2.7 per cent to Rs 494.80 and Infosys advanced 1.2 per cent to Rs 2,113.

TCS rose ahead of its Q4 results, which are scheduled today. The stock rose nearly 3 per cent to Rs 1,298. Eight brokerages expect 4.8 - 9.9 per cent, sequential growth in TCS' consolidated net profit as per US GAAP, between Rs 1,157.30 crore and Rs 1,213.70 crore, as compared to a net profit of Rs 1,104.70 crore in the December 2006 quarter. They expect 5 - 7.1 per cent growth in consolidated revenue as per US GAAP, between Rs 5,105.30 crore and Rs 5,206.20 crore, compared to Rs 4,860.50 crore in the December 2006 quarter.

ONGC gained 2.6 per cent to Rs 893.

Banking stocks extended recent gains on reports that the credit-deposit ratio of the banking sector had hit an all-time high of 74.13 per cent as at end FY 2007. State Bank of India (SBI) rose 1.8 per cent to Rs 1,018, ICICI Bank gained 1.3 per cent to Rs 884 and HDFC Bank rose 1.4 per cent to Rs 993.80.

Shares of credit rating agency, ICRA, jumped 17.4 per cent to Rs 937. Hindustan Zinc rose 1.3 per cent to Rs 680.15. Cipla dropped 1.6 per cent to Rs 228.40.

Asian markets were trading in the green today after a string of positive US earnings' reports boosted confidence in equities, with Japan leading gainers on a weak yen. The Nikkei 225 average was up 1.59 per cent.

US stocks rose last week, cheered by a higher profit forecast from drug maker Merck&Co. The Dow Jones industrial average closed up 59.17 points, or 0.47 per cent, at 12,612.13. The Standard&Poor's 500 Index finished 5.05 points, or 0.35 per cent, higher at 1,452.85. The NASDAQ Composite Index ended up 11.62 points, or 0.47 per cent, at 2,491.94.

Global liquidity still remains strong, helping global markets to recover rapidly from recent steep corrections. However, concerns that too much money will lead to inflated prices of assets and volatility remain.

US crude oil futures ended lower last week on profit-taking. May crude settled down 22 cents, or 0.3 per cent, at USD 63.63 a barrel.

UNI

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