|
Lower than expected revenue guidance from Infosys
is all it took to send the indices crashing to their largest
single day fall since May of last year. To make matters
worse, the guidance from Infosys yesterday came on a holiday
for the local markets. The markets opened today on the
back of a large sell off in Infosys in the US, the stock
losing close to ten per cent in two days.
As
expected, the indices opened deep in the red and steadily
lost further ground except for a brief period before noon,
when they tried to stabilise. Overall weakness in other
Asian markets added to the gloom as technology stocks
were hammered down. Sensex closed at 6248, down a staggering
220 points and the Nifty at 1956, down 69 points. Nifty
April futures closed at a massive 19 points or a percentage
lower than the spot index.
Among
index stocks, ABB, Hero Honda and Colgate were the only
gainers while Infosys, Wirpo and SAIL were the major losers.
The market lost over Rs24,000 crore of value in a single
day.
US
markets continued the weak trend from Wednesday and slumped
over a per cent. Lower retail sales, resulting from higher
fuel prices and interest rates, have led to worries about
weakening corporate performance in the near future. Worse
than expected results and a weak outlook from IBM spooked
the technology heavy NASDAQ index. Dow lost a per cent
while NASDAQ lost more than a per cent.
Crude
futures for May delivery opened weak yesterday, going
below the psychological mark of $50 to a barrel. However,
traders returned later in the day and covered their short
positions which pushed the quotes to above $51. Today,
crude has opened weak in early European trades.
Many
of the Indian ADR's came crashing down as software stocks
led by Infosys saw large selling by investors. Infosys
ADR lost close to seven per cent and has lost almost 20
per cent from its recent highs. Satyam lost over five
per cent while Wipro lost over four per cent. ICICI Bank,
MTNL, Dr Reddy's and VSNL were all losers. HDFC Bank was
the only one to close with marginal gains.
Inflation
for the week ended 02 April rose to 5.26 per cent as against
5.05 per cent for the previous week. According to the
Prime Minister's economic advisory council, the current
inflation would be over 6 per cent if fuel prices are
adjusted to reflect higher crude prices.
Infosys
expects 28 to 30 per cent revenue growth in dollar terms
for the current fiscal, much lower than the close to 50
per cent rise achieved last year. For the first quarter
ending June 2005, the company expects revenue to growth
to be marginal.
For
the fourth quarter ended March 2005, profits have grown
over three per cent on a revenue growth of close to six
per cent as compared to the third quarter. Profits are
after excluding the proceeds from the sale of a subsidiary.
The company expects to cross revenues of $2 billion during
the current year and is planning to hire over 12,000 employees.
ABB
was the sole significant gainer among frontline stocks
after the company announced better than expected results
for the quarter ended March 2005. The company reported
a profit growth of 63 per cent as revenues increased by
38 per cent, compared to the same quarter of last year.
The stock posted a new 52-week high today.
Bank
of Baroda will come out with a public issue of more than
seven crore shares in the near future. The bank expects
a credit growth of 25 per cent in the current fiscal and
is looking at acquisitions in Asia and Africa. BoB is
also planning to enter the insurance space through a joint
venture.
Metal
stocks were among the significant losers today on the
back of a major fall in non-ferrous metal prices in the
international market. Copper prices were the hardest hit
and, not surprisingly, Hindalco was one of the most affected
stocks.
Steel
stocks also lost ground on worries of a global slowdown,
as projected by IMF, affecting steel prices. Tata Steel
and SAIL were among the major losers.
Mid-cap
action
Mid-cap
stocks also came crashing down even though the percentage
fall was not as high as the frontline stocks. The CNX
mid-cap 200 index lost two and a half per cent, marginally
lower loss than both Sensex and Nifty.
Television
Eighteen, which runs the CNBC-TV18 channel, was one of
the few gainers in the mid-cap space. The company is planning
to launch a general news channel in English shortly. The
company had announced its plans to raise up to $50 million
to fund expansion plans. The stock rallied almost eight
per cent early in the morning, but gave up part of its
gains later in the day.
NDTV,
Television Eighteen's competitor, slumped close to seven
per cent on reports that one of its star television anchors
and the company's CFO have quit. They are reportedly joining
the new news channel being promoted by Television Eighteen.
Dwarikesh
Sugar, which came out with an IPO a few months back, announced
its results for the quarter ended March 2005. The company
has reported profits of over Rs10 crore as against a loss
of over Rs1 crore as compared to the same quarter of last
year. Sales have improved marginally to over Rs40 crore.
The company is confident of maintaining this performance
for the next quarter.
Mid-cap
tech companies like iGate Global, Geometric Software and
Aztec Software have reported good numbers for the quarter
ended March 2005.
iGate
global has reported a profit of Rs2.2 crore for the quarter
ended March 2005 as against a loss of Rs5.6 crore last
year. For the full year, profits have increased to over
Rs21 crore from Rs8 lakhs for the previous year.
Geometric
Software reported an over 40 per cent increase in profits
for the fourth quarter as revenues increased more than
50 per cent.
 Plastics
and cable manufacturer Finolex Industries disappointed
with its fourth quarter numbers. Profits for the quarter
declined over 20 per cent even as revenues rose. For the
full year, the company has reported a six per cent rise
in profits on a 15 per cent rise in sales.
*Disclaimer:
The author does not have any position in the stocks specifically
mentioned above at the time of writing this article. This
analysis / report is only for the purpose of information
and is not an investment advice. Readers are advised to
consult a certified financial advisor before taking any
investment decisions. While efforts have been made to
ensure the accuracy of the information provided in the
content the author or publisher shall not be held responsible
for any loss caused to any person whatsoever.
Other
articles by Rex Mathew
List
of general reports on markets List
of general reports on finance
Market:
Indices
National
Markets
Gain (+) / Loss (-)
|
SENSEX
|
6,248.34
|
-219.58
|
| NIFTY
|
1,956.30
|
-69.15
|
Last
Update : 15 April, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HEROHONDA
M |
513.00
|
525.00
|
505.00
|
515.10 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,050.00
|
2,050.00
|
1,945.00
|
1,956.60 |
| WIPRO
LTD. |
644.00
|
644.00
|
601.10
|
605.35 |
| SATYAM
COMP |
400.00
|
400.00
|
380.55
|
382.75 |
| CIPLA
LTD. |
251.40
|
251.40
|
233.00
|
234.40 |
| HINDALCO
IN |
1,290.00
|
1,299.90
|
1,247.00
1,257.00 |
|
| HDFC
BANK LT |
562.50
|
562.50
|
532.05
|
536.75 |
| TATA
IRON AND STEEL CO. LTD. |
378.00
|
378.00
|
364.10
|
366.25 |
| STATE
BANK OF INDIA |
642.00
|
642.00
|
618.75
|
621.75 |
| ONG
CORP LTD |
875.50
|
875.50
|
841.00
|
846.65 |
| RANBAXY
LABORATORIES LTD. |
971.00
|
989.00
|
946.25
|
951.95 |
| DR.REDDY'S
LABORATORIES LTD. |
720.00
|
733.00
|
700.00
|
711.80 |
| TATA
MOTORS |
420.50
|
420.50
|
407.10
|
410.25 |
| TATA
POWER |
349.00
|
351.00
|
336.10
|
338.60 |
| ZEE
TELEF LT |
135.10
|
135.10
|
131.15
|
131.65 |
| RELIANCE*
|
545.00
|
545.00
|
526.00
|
529.70 |
| HOUSING
DEVELOPMENT FINANCE CO |
710.00
|
715.00
|
699.00
|
702.40 |
| I
T C LTD |
1,410.00
|
1,415.00
|
1,365.05
|
1,376.80 |
| ICICI
BANK L |
404.50
|
405.00
|
391.00
|
402.65 |
| HINDUSTAN
LEVER LTD. |
133.10
|
134.80
|
131.25
|
132.25 |
| GRASIM
INDUSTRIES LTD. |
1,199.00
|
1,199.00
|
1,180.00
|
1,185.15 |
| Bajaj
Auto |
|
|
|
1,078.35 |
| Bharti
Televentures |
|
|
|
203.70 |
| BHEL |
|
|
|
788.65 |
| Gujarat
Ambuja |
|
|
|
421.00 |
| Hindustan
Petroleum Corp |
|
|
|
322.25 |
| Larsen
& Toubro Limited |
|
|
|
952.60 |
| Maruti
Udyog |
|
|
|
405.70 |
| Reliance
Energy |
|
|
|
507.90 |
Last
Update : 15 April, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| INFOSYSTCH
|
2050.00
|
2050.00
|
1935.00
|
1957.10 |
| TISCO
|
375.00
|
378.00
|
364.15
|
366.25 |
| RELIANCE
|
543.90
|
543.90
|
526.05
|
529.75 |
| TCS |
1395.00 |
1395.00
|
1315.00
|
1319.00 |
| SATYAMCOMP
|
397.00
|
401.10
|
381.50
|
383.50 |
| TATAMOTORS
|
421.60
|
422.00
|
407.65
|
410.10 |
| SAIL
|
62.50
|
62.50
|
58.35
|
58.70 |
| ONGC
|
878.95
|
878.95
|
844.50
|
850.55 |
| SBIN |
642.45 |
642.45
|
619.05
|
621.75 |
| WIPRO
|
640.00
|
640.00
|
601.00
|
605.60 |
| MARUTI
|
413.00
|
413.00
|
401.65
|
404.70 |
| GUJAMBCEM
|
433.80
|
433.80
|
415.00
|
421.35 |
| CIPLA
|
251.00
|
251.00
|
233.35
|
234.40 |
| RANBAXY
|
979.00
|
979.00
|
947.35
|
953.55 |
| ITC
|
1413.00
|
1416.95
|
1364.50
|
1376.85 |
| ICICIBANK
|
410.00
|
410.00
|
383.55
|
403.10 |
| LT
|
965.00
|
977.20
|
939.10
|
952.20 |
| M&M
|
469.00
|
469.00
|
454.50
|
457.20 |
| PNB |
389.00 |
389.00
|
378.60
|
380.40 |
| HINDLEVER
|
134.00
|
134.50
|
131.05
|
132.25 |
| REL |
547.95 |
547.95
|
503.40
|
508.20 |
| HINDALC0
|
1291.10
|
1300.00
|
1245.00
|
1253.15 |
| BHEL
|
801.00
|
801.00
|
772.10
|
790.95 |
| ORIENTBANK
|
307.00
|
307.00
|
298.60
|
300.50 |
| BPCL
|
364.00
|
366.00
|
358.00
|
363.60 |
| HDFC
|
720.00
|
720.00
|
697.05
|
702.65 |
| BHARTI
|
206.60
|
206.60
|
200.00
|
204.15 |
| GRASIM
|
1192.05
|
1208.00
|
1178.50
|
1184.25 |
| HDFCBANK
|
561.00
|
561.70
|
533.00
|
538.55 |
| HINDPETRO
|
328.00
|
328.00
|
320.00
|
322.15 |
| HEROHONDA
|
512.45
|
524.80
|
502.00
|
517.50 |
| ZEETELE
|
137.00
|
137.00
|
131.00
|
132.10 |
| HCLTECH
|
364.50
|
366.00
|
350.00
|
360.75 |
| ABB
|
1263.40
|
1349.00
|
1245.00
|
1297.40 |
| DRREDDY
|
721.00
|
729.00
|
699.05
|
711.95 |
| IPCL
|
167.00
|
167.00
|
162.10
|
163.15 |
| TATATEA
|
520.30
|
520.30
|
500.00
|
510.15 |
| TATAPOWER
|
352.70
|
354.00
|
336.05
|
338.30 |
| BAJAJAUTO
|
1048.10
|
1083.00
|
1048.10
|
1072.30 |
| GAIL
|
212.90
|
212.90
|
206.40
|
207.25 |
| NATIONALUM
|
169.00
|
169.00
|
161.50
|
162.70 |
| SCI
|
153.55
|
153.55
|
147.50
|
148.15 |
| ACC
|
366.00
|
366.00
|
360.00
|
361.95 |
| DABUR
|
120.95
|
120.95
|
113.30
|
114.30 |
| SUNPHARMA
|
464.90
|
465.00
|
459.00
|
461.60 |
| MTNL
|
117.90
|
117.90
|
113.65
|
114.65 |
| VSNL
|
192.10
|
192.10
|
185.00
|
188.20 |
| TATACHEM
|
142.55
|
153.65
|
142.55
|
149.95 |
| GLAXO
|
712.00
|
720.00
|
702.60
|
716.10 |
| COLGATE
|
189.00
|
193.50
|
187.15
|
191.00 |
Last
Update : 15 April, 2005, 16:04PM
| 
