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Sensex rises 1.1%, techs climb

Sensex rises 1.1%, techs climb
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First Published: Wed, Apr 13 2011. 12 24 PM IST
Updated: Wed, Apr 13 2011. 12 24 PM IST
Bangalore: Shares shrugged off a subdued start and climbed 1.1% on Wednesday, with export-driven outsourcers among the gainers on expectations for robust quarterly earnings.
Traders said the market was consolidating after falling for five consecutive sessions, and investors would be watching the guidance that companies release with the results.
Infosys Technologies , which gets more than 90% of its revenue from exports, rose as much as 1.3% ahead of its earnings on Friday.
Bigger rival Tata Consultancy Services and No. 3 outsourcer Wipro gained 2 and 1.3% respectively.
The top three outsourcers are expected to post strong quarterly profit and indicate robust revenue growth for the year ending March 2012 as overseas clients boost technology spending in an improving global economy.
At 11:58am, the 30-share BSE index was up 1.1% at 19,467.20 points, with 24 components gaining. It had fallen as much as 0.8% early. The 50-share Nifty was up 0.9% at 5,840.20.
The benchmark had climbed 9.1% in March, its biggest monthly rise in six months, but is down 5% so far this year.
“The underlying sentiment is okay for the time being, not very bullish or very negative,” said Gajendra Nagpal, CEO of Unicon Financial. “A clearer picture will emerge on results and guidance for this year.”
Buying was seen in automobile stocks, which fell in the previous two sessions after industry data showed car sales growth could slow down in 2011.
Tata Motors , Mahindra & Mahindra , Maruti Suzuki and Bajaj Auto were up between 0.8% and 2.2%.
In the broader market, gainers were nearly double the number of losers with about 198 million shares changing hands on the BSE. The market was closed on Tuesday and is shut on Thursday for local holidays.
Engineering and construction conglomerates Larsen & Toubro and Jaiprakash Associates climbed 1.6 and 4.5% respectively.
Data on Monday had showed industrial output grew at a slower-than-expected 3.6% in February, dragged down by continued contraction in capital goods, but a hawkish central bank was still expected to tighten monetary policy as it battles stubbornly high inflation.
The infrastructure index , which dropped nearly 1% after the data, recouped the loss.
The MSCI’s measure of Asian markets other than Japan was up 0.9% by 12:07pm, while Japan’sNikkei gained 0.9%.
STOCKS
Compact Disc was up by daily limit of 10% at Rs 62.60 after the company’s board approved a plan to delist its shares at Rs 75 each.
GMR Infrastructure Ltd rose as much as 3.2% to Rs 43 after its group chief financial officer told Reuters the company was looking to raise $150 million through private equity for its airport arm.
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First Published: Wed, Apr 13 2011. 12 24 PM IST
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