The Hindu Business Line : Broad trend pushes up Indian counters too

The US markets rallied strongly thanks to better-than-expected results from corporates such as Caterpillar Inc, Google Inc, Honeywell International, and Johnson and Johnson. Dow Jones Industrial reached its new peak at 12,962, gaining 2.8 per cent over a week period. S&P 500 added 2.2 per cent to 1484.35, which is the highest since September 2000, according to Bloomberg. Nasdaq rose 1.4 per cent to 2526.39, the highest since February 2001.

The domestic markets also jumped on the back of some strong financial performance by Indian companies, particularly from information technology segment. BSE Sensex jumped four per cent at 13,897 and NSE's S&P CNX Nifty by 4.25 per cent at 4083.55.

With both the markets witnessing smart turnaround, the majority of Indian ADRs also sailed along with them. However, Infosys was the big loser apart from Rediff.com. The IT major lost 1.3 per cent to close at $54.25 against the previous week's $54.96.

However, Wipro and Satyam Computer, which declared strong financial performance, finished on strong note. Wipro posted a net profit of Rs 818.9 crore for the quarter ended March 31, 2007, as compared to Rs 657.5 crore for the quarter ended March 31, 2006, and Rs 2,842.1 crore (Rs 2,020.5 crore) for the year ended March 31, 2007. "Looking ahead, for the quarter ending June 2007, we expect our revenue from our Global IT services business to be approximately $711 million," the company said.

Satyam posted a profit after taxation of Rs 397.5 crore (Rs 289.9 crore) for the quarter ended March 31, 2007, and Rs 1,423.23 crore (Rs 1,239.75 crore) for the year ended March 31, 2007.

However, the biggest gainer was MTNL (6.06 per cent) followed by ICICI Bank (5.8 per cent).

K.S. BADRI NARAYANAN

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