Sensex up by 277.71 points, closes at 13,897 mark

Mumbai, Apr 20: The Sensex today surged by 277.71 points on theBombay Stock Exchange and settled to a two-month high of 13,897,tracking firm global markets and Union Finance Minister P Chidambaram'sprediction that inflation would ease to around 5.7 per cent next week.

Among the broader markets, the Nifty Index also gained a handsome85.90 points and closed above the psychological 4,000 mark on theNational Stock Exchange (NSE) at 4,083.55 from its previous close of3,997.65 points.

A surge in the benchmark Sensex in mid-afternoon trade wasfollowed by a cooling off period after official data released at 1230hours, showed a rise in inflation at 6.49 per cent, driven by soaringprices of food and manufactured goods. However, the rally once againgathered steam later after Union Finance Minister Chidambaram said heexpected annual inflation to ease to around 5.7 per cent next week,market analysts observed.

At the BSE, The market-breadth was strong as against 1,483 scripsthat rose, 1,096 declined and 95 scrips remained unchanged. Gainersoutpaced losers by a ratio of 1.35:1 and the total turnover was Rs 4301crore.

Satyam Computer jumped 6.4 per cent to Rs 476.75, after it todaygave a strong guidance for FY 2008. Satyam Computer net profit rose 38per cent year-on-year in the March 2007 quarter, to Rs 394 crore.

Just like Infosys, Satyam Computer has also reported strongearnings and revenue guidance in dollar terms as per US GAAP. Again,like Infosys, Satyam Computer has given muted earnings and revenueguidance as per Indian GAAP.

Satyam Computer forecast 27 - 29 per cent growth in basic earningfor the next fiscal, 2008, that is between USD 1.16 and USD 1.18.

The US GAAP revenue is expected to rise 28 - 30 per cent, betweenUSD 1.87 billion and USD 1.9 billion for financial year 2008. As perIndian GAAP, Satyam Computer has forecast between 18 - 20 per centgrowth in earning per share (EPS) for the same period, that is betweenRs 25.32 and Rs 25.73. The software major has also forecast 20 - 22 percent growth in revenue as per Indian GAAP for the financial year 2008.

Asian and European bourses rose solidly today as fears faded thata sharp fall in Chinese stocks yesterday could ripple through financialmarkets, as it did in February. MSCI's All-Country World Index rose 0.3per cent to 390.3 points, near its all-time peak and taking itsyear-to-date gains to 5.8 per cent.

The FTSEurofirst 300 was up 0.6 per cent at 1,568.1 points.

In Asia, China's Shanghai Composite Index recouped, adding 3.9 per cent.The index is up by 159 per cent in the past 12 months.

Japan's Nikkei clawed back by 0.5 per cent, compared to it'syesterday's slide of 1.7 per cent, its biggest fall in a month. It'sgain was helped by exporters who benefited from the yen's retreat.

Reliance Industries (RIL) gained 3.4 per cent to Rs 1543.75. The stockhit a high of Rs 1,545, which is a lifetime high for the stock. Theboard of RIL meets on April 26 to consider Q4 March 2007 and FY 2007results.

Housing finance major HDFC jumped 6.5 per cent to Rs 1667. It was the top gainer from the 'A' group.

Wipro lost 1.3 per cent to Rs 571. It today reported 44 per centyear-on-year growth in net profit in the March 2007 quarter to Rs 861crore as per US GAAP. It also forecast strong growth on moreoutsourcing and higher billing rates.

ONGC gained 3 per cent to Rs 923. Oil prices rose as OPEC member,Nigeria, heads for weekend elections, ahead of the US May futurescontract expiry later today. Brent crude was up 51 cents at USD 66.45 abarrel, while US light crude added 83 cents to USD 62.66.

Tata Steel gained 6 per cent to Rs 536. State Bank of India gained2.3 per cent to Rs 1078, after the largest lender said it planned toborrow up to Rs 10.000 crore during 2007/08.

Bharti Airtel surged nearly 4 per cent to Rs 848.80. Bharti Airtelhas launched a new set of prepaid cards, waiving processing fees.

Named Airtel Happy Recharge, the cards will come in threedenominations of Rs 299, Rs 399 nd Rs 499 having a validity of 30 days.It will also have a single rate for local calls, and one rate for STDcalls irrespective of the caller calling any other operator or even toa landline.

Reliance Communications gained nearly 5 per cent to Rs 455.90. Thecompany had registered strong growth in new subscriptions for the monthjust gone by.

UNI