Nifty ends flat; IT index jumps 3 per cent on Infy nos

The benchmark Nifty closed with modest losses after witnessing volatility throughout the session with negative bias. Auto, oil & gas exploration, FMCG, pharma, telecom, select metal and financial companies' shares kept the markets in negative terrain.

However, technology stocks showed strong performance in the second half of trade as experts see volume growth and margin expansion in IT companies going ahead after Infosys numbers. These stocks along with BHEL, NTPC, Reliance Power, Tata Steel, Reliance Infrastructure, HDFC Bank, PNB, DLF and BPCL witnessed buying interest and limited the losses to major extent.

Today's big event was Q4FY10 numbers of Infosys Technologies. India's second largest IT exported posted better-than-expected numbers as well as expects 16-18% growth in revenues in dollar terms. However, it lowered its rupee guidance for FY11. It expects EPS at Rs 106.82-111.28 per share and revenue growth of 9-11%, which hammered the stock in initial trade.

But experts believe that volume growth and margin expansion going ahead will help the technology companies, which brought the rally in share prices. The BSE IT index rose over 3%; Infosys surged 3.7% and HCL Tech was up 3.4%. TCS and Wipro gained 2.6-2.9% while Mastek tanked over 7% on disappointing numbers; its net profit declined over 34%.

This year, Apurva Shah of Prabhudas Lilladher feels has been a good one for Infosys. ''There has been an upgrade in the analysts' estimates in almost every quarter. This quarter's numbers have also come in quite in-line with what we were expecting. In fact on the revenue front it is somewhat ahead of expectations."

The numbers have presently surprised Nilesh Shah of Envision Capital too. ''On the revenue front, they have given out excellent set of numbers. But the EPS has been a disappointment,'' he said.