Sensex up by 277.71 points

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

Among the broader markets, the Nifty Index also gained a handsome 85.90 points and closed above the psychological 4,000 mark on the National Stock Exchange (NSE) at 4,083.55 from its previous close of 3,997.65 points.

A surge in the benchmark Sensex in mid-afternoon trade was followed by a cooling off period after official data released at 1230 hours, showed a rise in inflation at 6.49 per cent, driven by soaring prices of food and manufactured goods. However, the rally once again gathered steam later after Union Finance Minister Chidambaram said he expected 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 scrips that rose, 1,096 declined and 95 scrips remained unchanged. Gainers outpaced losers by a ratio of 1.35:1 and the total turnover was Rs 4301 crore.

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

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

Satyam Computer forecast 27 - 29 per cent growth in basic earning for 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, between USD 1.87 billion and USD 1.9 billion for financial year 2008. As per Indian GAAP, Satyam Computer has forecast between 18 - 20 per cent growth in earning per share (EPS) for the same period, that is between Rs 25.32 and Rs 25.73. The software major has also forecast 20 - 22 per cent growth in revenue as per Indian GAAP for the financial year 2008.

Asian and European bourses rose solidly today as fears faded that a sharp fall in Chinese stocks yesterday could ripple through financial markets, as it did in February. MSCI's All-Country World Index rose 0.3 per cent to 390.3 points, near its all-time peak and taking its year-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's yesterday's slide of 1.7 per cent, its biggest fall in a month. It's gain was helped by exporters who benefited from the yen's retreat.

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