The Hindu Business Line : Infotech counters end on strong note

THE US equities witnessed mixed trend as the broad benchmark S&P 500 fell for the third straight week despite a stronger-than-expected consumer data. The S&P 500 slipped 0.2 per cent last week. According to Bloomberg data, this was the longest losing streak since the four weeks ending February 7, 2003. However, the Dow average gained 0.3 per cent for the week, its first weekly advance in three. The Nasdaq gained three per cent.

Led by banking stocks, the domestic markets rebounded strongly by 1.57 per cent. The NSE's S&P CNX Nifty also jumped 1.3 per cent.

Broadly, the Indian ADRs also performed well at the US markets last week with infotech majors leading the gainers list. Reports showing that consumer spending has increased appeared to have lifted spirit for the IT counters. The US Commerce Department, in its final estimate of fourth-quarter economic growth, said consumer spending, which accounts for 70 per cent of the economy, grew at a 3.2 per cent annual rate, faster than the 2.7 per cent previously reported. Following this, Infosys closed higher at $83.71 against the previous week close of $82.82, Satyam at $21.36 ($20.39) and Wipro at $43.06 ($40.95).

ICICI Bank, which plans to come out with a public issue to mop up Rs 3,050 crore through the book-building route on April 2-7, also closed higher at $14.15 ($13.85). The price band for the issue has been fixed at Rs 255 to Rs 295 per equity share while the stock closed at Rs 284.65 on the BSE on Friday.

Dr. Reddy's Laboratories, however, closed the week negative with the company facing charges of infringement of two US patents for the antibiotic medicine Avelox in a US Federal Court. Germany's Bayer AG said in a suit filed last Wednesday that permitting Dr Reddy's to sell a generic version of the Avelox drug will violate patents held by it. The counter finished marginally lower at $23.62 ($23.76).

On the premium front, there were not much deviations from the last week levels except for MTNL and HDFC Bank. While MTNL improved about six percentage points to 33.22 per cent (26.87 per cent), HDFC Bank's premium fell to 15.5 per cent (24.23 per cent).

More Stories on : Commentary | ADR Watch

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SSKI plans to enter PMS in big way

The compulsions of fund manager

Weak market affects MIPs too

Synchronous trades in GTB — SEBI completes probe into ICICI Brokerage role

`Investors prefer stable Govt at Centre'

Mid-cap stocks may perform well

Infotech counters end on strong note