The Mint Report for 10 August 2011

The Mint Report for 10 August 2011

Indian markets have rebounded after a six-day bloodbath. The recovery followed a turnaround in global bourses after America’s Fed promised to maintain rates at close to zero-percent for two years. The Sensex jumped 273 points to 17,131. And the Nifty climbed 88 to 5,161 by the end of trade.

Tech stocks, which are heavily dependent on export markets, made gains on Wednesday after the six-day battering. Tata Consultancy Services gained 1.73% on the BSE to 984. And Infosys rocketed up 2.88% by the time markets closed to 2445.60. Wipro’s shares meanwhile climbed 2.53% to 356.05.

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But the one IT stock that beat them all was Mahindra Satyam. News of its better-than-expected quarterly results sent its shares soaring 10.20% on the BSE to 78.35.

Shares across other sectors also advanced on Wednesday. India’s biggest company, RIL, went up 0.73% to 771. And auto firm Mahindra and Mahindra speeded ahead a full 5.03% to 729.55.

Switching to earnings, GMR Infrastructure has posted losses for a third consecutive quarter. And the company’s blaming higher depreciation and interest costs in its airport business. GMR posted a net loss of Rs67 crore compared to a profit of Rs28 crore in the same quarter last year. That drop was despite a 51% rise in revenues to Rs1,864 crore. GMR gets some 45% of its revenue from the airports it operates. The firm says it has made losses at Delhi airport because it’s not allowed to charge airlines and passengers higher fees. Its other Indian airport in Hyderabad has made a modest profit.