The Hindu Business Line : Satyam Computer in limelight

Bull party continued at the US and the Indian markets, thanks to encouraging economic data and strong numbers from corporates. The US S&P 500 gained 1.2 per cent, Dow Jones Industrial Average moved up by 1.3 per cent and the tech-focussed Nasdaq jumped 2.2 per cent.

The BSE Sensex gained 3 per cent and the NSE’s S&P CNX Nifty 2.3 per cent following RBI’s surprise decision to keep the key lending rates steady despite inflationary pressures.

With both the markets displaying firm trends, the Indian ADRs also recorded strong gains. Among them, the biggest gainer was Satyam Computer, which jumped by 10.4 per cent to close at $27.18 over the previous week’s close of $24.61.

Satyam last week had signed an agreement with steel major Arcelor-Mittal, as one of the two global IT service providers, to consolidate sub-contractor activities and help in overall business transformation. The deal (details of which were not disclosed due to non-disclosure terms) provides opportunity to offer integrated process technology solutions from the Satyam’s manufacturing practice.

The other IT majors — Wipro (6.26 per cent), Patni Computers (6.21 per cent) and Infosys Technologies (2.32 per cent) — also ended the week on firm note.

Tata Motors was the other big gainer as its ADR jumped 6.65 per cent, despite the company announcing a dip in April sales numbers.

The company reported a decline of 5.8 per cent in sales, including exports, at 38,149 units for April compared with 40,486 units in the same month last year.

Telecom majors — Tata Communications and MTNL — also gained by 2.82 per cent and 2.31 per cent respectively.

It was a mixed show by banking majors HDFC Bank and ICICI Bank. While the former closed a tad higher, the latter ended the week with a loss of 0.64 per cent.

However, last week’s biggest loser was Sterlite Industries, which shed 2.46 per cent. Profit-booking coupled with general softening of prices at the commodity bourses seem to have affected the sentiment of the counter. The company announced a 46.5 per cent rise in net profit at Rs 306.45 crore for the fourth quarter ended March 2008.

Rediff.com was the only other loser, whose ADR declined by 0.97 per cent at $9.2 ($9.29).

More Stories on : Stock Markets | ADR Watch

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

Stories in this Section
Public less enthusiastic to market-linked insurance plans

Again a week of gains?

Satyam Computer in limelight

‘Essence of Wave Principle will never change’

JK Tyre & Industries (Rs 139.30): Buy

Day Trading Guide

Dalal Street may see consolidation at current levels