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Shanthi Venkataraman
No bad news is good news. Investors breathed a sigh of relief as frontline IT company Infosys declared results that were largely in line with expectations and not below guidance as was widely feared.
Markets gave thumbs up to the software sector, which helped the Sensex and the Nifty record a 2 per cent gain.
Indian markets were, in fact, the strongest gainers on Friday, even as most other Asian markets closed in the red. TheSensex closed at 13,384, a 4 per cent gain over the previous week. Leading the gains were the stocks of Satyam, ICICI Bank, Infosys and Reliance.
Sixty per cent of the stocks traded on the BSE advanced. That the inflation rate for the week ended March 31 had slowed to a three-month low of 5.74 per cent also aided positive sentiment.
Mid-cap and small-cap stocks also rallied, although the gains were relatively subdued compared with large-caps.
IT stocks lead
Tech stocks soared following the declaration of Infosys results. The BSE IT index was the strongest index gainer, appreciating nearly 4 per cent. While the stock of Infosys itself advanced only 2 per cent, the stocks of Satyam, TCS and Wipro got a bigger boost.
TCS, which is to declare its results on Monday, gained 5 per cent to close at Rs 1,262.6, while the price of Satyam jumped by close to 8 per cent.
Other tech stocks that were in the limelight include Tech Mahindra, HCL Tech, and a host of mid and small-cap stocks such as Geometric Software, Sasken Communications, Tulip IT Services and RS Software to name a few.
Sugar stocks slump
After a brief recovery in recent weeks, sugar stocks once again came under pressure on a weak price outlook.
The stocks of Balrampur Chini, Uttam Sugars, Sakthi Sugars, Bajaj Hindustan, Upper Ganges Sugar and Oudh Sugar figured prominently in the losers list on Friday.
The International Sugar Organisation said that it might revise its forecast of sugar surplus upwards on the back of higher production in India, Brazil and Thailand.
Stock-specific action
Credit-rating agency ICRA made a spectacular debut on the bourses. The stock listed at a 68 per cent premium to its offer price and continued to soar thereafter, closing at Rs 803.25, a 143 per cent premium to the offer price.
Its already-listed peer CRISIL also rose by 5 per cent to close at Rs 2913.75.
Pyramid Saimira was another stock that soared on Friday, jumping 9.6 per cent to close at Rs 330.8.
The company announced plans to launch 50 theatre screens in Malaysia in the next 60 days at an investment of RM10 million.
Cinemax was another multiplex operator that gained smartly. Brokerage outfit Emkay Shares has put out a `buy' report on the stock.
The stock of Idea Cellular was also up about 5 per cent on Friday. International brokerage house Citigroup has a `buy' report on the stock.
Other stocks that gained include Infomedia, Orbit Corporation, Deccan Aviation, Oriental Hotels, Suzlon Energy, Container Corporation and Financial Technologies, to name a few.
The stocks of Mudra Lifestyle, Seshasayee Papers, Dynamatic Technologies, iGate Solutions and Apollo Hospitals were prominent among the losers.
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