The Hindu Business Line : Most counters end positive

The Dow Jones Industrial Average rallied 3.2 per cent last week and the S&P’s 500 broad-market index leapt 4.2 per cent while the tech-focussed Nasdaq vaulted 4.9 per cent.

On the other hand, unexpected higher inflation, which climbed to 7 per cent – the highest in 39 months, weakened the sentiment sharply on the domestic market.

The BSE Sensex logged a loss of 6.2 per cent last week and the National Stock Exchange’s S&P CNX Nifty tumbled 5.97 per cent.

Banks suffer

Among the ADRs, but for the banking counters – ICICI Bank and HDFC Bank – the other counters ended in the positive territory.

Expectations that the Reserve Bank of India might take some pre-emptive steps ahead of the annual Monetary Policy, which is scheduled on April 29, to counter rising inflation, seemed to have affected the sentiment for the banking counters. HDFC Bank was the biggest loser of the week, as the ADR slumped 5.9 per cent. ICICI Bank dipped 1.6 per cent to $38.93.

The ADR of Patni Computers was among the biggest gainer; it gained 9.2 per cent to end at $12.28 ($11.25). The other infotech ADRs also recorded gains. Wipro jumped 5.6 per cent, Satyam Computer moved up 2.9 per cent and Infosys Technologies gained 1.5 per cent. Among the three, Infosys would be the first to come out with its Q4 and FY-08 financial numbers along with guidance for FY-09 on April 15, while Satyam Computer is set to announce its financial performance on April 21.

Internet recovers

Internet counters Rediff.com and Sify, which maintained their inspired bull run, were the top gainers last week. While the former jumped 9.5 per cent, the latter moved up 7.2 per cent.

Both the ADRs were beaten down sharply in the recent bear cycle.

Telecom counters MTNL and Tata Communications (erstwhile VSNL) logged a gain of 3 per cent and 1.8 per cent respectively. MTNL announced that it has received

refunds amounting to Rs 1,395 crore from the Income-Tax Department for various assessment years. The amount of interest will increase the profits of the company for the financial year 2007-08.

Tata Motors, which was under pressure following the acquisition of Jaguar and Land Rover brands from Ford Motors of the US, recovered marginally by 0.9 per cent. The divergent trend at the US and the Indian bourses helped many ADRs to move into premium zone with respect to their underlying close on the BSE. Wipro’s ADR jumped to 15.22 per cent against the discount of 0.23 per cent in the previous week.

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