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Markets up; TCS at all-time high; Wipro drops

Markets up; TCS at all-time high; Wipro drops
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First Published: Fri, Oct 22 2010. 01 11 PM IST
Updated: Fri, Oct 22 2010. 01 11 PM IST
Mumbai: The BSE Sensex seesawed on Friday propelled by quarterly earnings, with Tata Consultancy Services rallying to an all-time high on robust outlook for outsourcing and Wipro falling after missing forecast.
Investors were circumspect as a Group of 20 meeting began in South Korea where officials are seeking a common path on currencies, trade and macroeconomic imbalances.
A flood of foreign money flowing into emerging markets chasing better returns has underpinned Indian stocks, but there are concerns in the region about the inflows pushing local currencies up and causing asset bubbles.
At 12:14pm, the 30-share BSE index was up 0.01% at 20,263.39 points, with 17 of its components advancing. The 50-share NSE index was down 0.1% at 6,094.70.
Kunal Sukhani, manager of institutional equities at Asian Markets Securities, said investors were rewarding good results and punishing poor performers.
Tata Consultancy jumped as much as 5.8% to a record Rs1,040.95 after the No. 1 Indian software services company posted a near 30% rise in quarterly profit and said it expected strong demand for outsourcing.
”We have been believers in the strength of the demand environment and the Tier-I players ability to capture the same. Infosys and now TCS 2QFY11 earnings reports add to our conviction,” Kotak Securities said in a note.
The brokerage raised its end-FY12 target price on TCS to Rs1,100 from Rs965 earlier, while retaining a buy rating.
Wipro, the third-largest outsourcer, fell nearly 4% after missed forecast with a 10% rise in second-quarter profit.
Top-listed biotech firm Biocon rose 1.3% as its July-September net profit rose by a fifth from a year ago.
Sunder Subramaniam, senior manager of institutional sales at Sharekhan, said he expected surging foreign fund interest to support the market.
“It really looks like there is a tsunami of liquidity. There is nothing to worry as such,” he said, referring to a $3.5 billion IPO by Coal India that was subscribed more than 15 times.
The BSE index is up 16% this year, thanks to foreign fund inflows of $23.8 billion.
In the broader market, gainers led losers in a ratio of 1.3:1 on volume of 254 million shares. Elsewhere, the MSCI’s measure of Asian markets other than Japan was up 0.3%, while Japan’s Nikkei rose 0.5%.
STOCKS
Novartis India rose 1.3% to Rs655.10, after the pharmaceutical and crop protection products maker said late on Thursday quarterly net profit rose 22%.
Indian Bank was up 3% at Rs310.35 as the state-run lender’s July-September net profit increased 12%.
Bajaj Corp was down 4% at Rs681.40, as the light hair oil producer posted a 19 fall in September quarter net profit.
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First Published: Fri, Oct 22 2010. 01 11 PM IST
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