Markets gain as Satyam surprises

The large fall in US markets yesterday and weakness in some of the Asian markets today morning pushed Indian markets downwards in early trades. After losing close to a percent on the Sensex, the markets recovered and gained strength gradually.

Buyers returned to the market as Satyam Computers announced better than expected results for the last quarter ended March 2005. Investors took comfort from the steady outlook given by the company and the stock closed with gains of over 5 per cent.

All round buying pushed up the indices and smart recovery in some of the banking stocks towards closing helped the markets to end the day with good gains. Sensex closed at 6299, up 55 points and the Nifty at 1949, up 19 points. Nifty April futures discount to the spot index widened to 7 points from yesterday's 4 points.

Among Nifty stocks, Satyam, Sun Pharma and BHEL were the major percentage gainers while Zee Tele, MTNL and Colgate were the major losers.

US markets declined further yesterday after showing signs of stabilizing over the previous two sessions. Both Dow and NASDAQ indices lost a per cent each. Investors are worried about growth in consumer demand as consumer prices are inching up. Fears of inflation have dampened the positive sentiments from better than expected corporate results.

Crude futures for May delivery gained further yesterday on worries of declining US inventory of refined products. Chinese crude oil imports data for the month of March, which rose over 23 per cent as compared to last year, gave further strength to the market. Crude closed at $52.44 to a barrel.

Inflation for the week ended 9 April rose to 5.48 per cent as compared to 5.26 per cent for the previous week.