Tech shares boost Sensex by another 99 pts

MUMBAI, APR 11: A sharp rise in leading technology stocks buoyed by strong earnings growth in leaders Infosys Technologies and Satyam Comp...

MUMBAI, APR 11: A sharp rise in leading technology stocks buoyed by strong earnings growth in leaders Infosys Technologies and Satyam Computer Services helped stock markets close higher for the fifth straight day on Tuesday. Pivotals led by Infosys Technologies and Satyam recovered from the early resistance and firmed up further lifting the revamped Sensex by about 99 points on the Bombay Stock Exchange BSE.

The uptrend was boosted following heavy buying by speculators as well as fresh purchases by FIIs. Operators said that announcement of better-than-expected working results by Infosys Technologies and Satyam Computer mainly fuelled today8217;s buying spree in several IT stocks. Sensex has now recovered by over 780 points in the last four sessions.

The reconstituted 30-share BSE sensitive index Sensex, which has the increased representation from the IT sector, opened weak at 5428.70 and moved irregularly in a wide range of 5541.82 and 5368.20 before closing at 5541.54 with a handsome gain of 98.68 points or 1.81 per cent compared to the previous level of 5442.86. The BSE-100 index rose by 26.27 points to 3044.77 from the previous close of 3018.50.

Brokers said enthused by excellent performance by trend-setter Infosys in the financial year 1999-00, operators and FIIs discounted a sharp fall of 258.24 points in the Nasdaq Composite Index last evening and took up strong positions in IT as well as other Indian stocks. Besides Infosys, recently added scrips like Satyam Computers and Zee Telefilms aided the Sensex immensely to close in the positive territory.

Satyam Computer spurted by Rs 312.55 to Rs 4219.90, Zee Telefilms by Rs 54.05 to Rs 1033.75, Infosys Tech by Rs 787.05 to Rs 10625.90, Global Tele by Rs 83.40 to Rs 2107, Hindalco by Rs 51.05 to Rs 801, NIIT by Rs 137.60 to Rs 1857.95 and SBI by Rs 1.70 to Rs 220.70. FIIs which were net buyers since March 31 reportedly picked up shares of Infosys, Satyam Computer, NIIT, Digital Equipment, Aptech Ltd, Zee Telefilms and SSI Ltd.

However, a host of old economy stocks failed to get any impact of encouraging corporate news in view of last day of current settlement on the National Stock Exchange NSE that witnessed squaring up activity. HFCL declined by Rs 43.60 to Rs 1440, ACC by Rs 6 to Rs 160, Dr Reddy by Rs 29 to Rs 1598, Grasim by Rs 10.35 to Rs 378.10, HLL by Rs 17.50 to Rs 2709, ITC by Rs 13.95 to Rs 720.05, Lamp;T by Rs 7 to Rs 309, Mamp;M by Rs 6.70 to Rs 348.90, MTNL by 8.25 to 243.50 and RIL by Rs 7.60 to Rs 355.40 on selling pressure.

In the specified group, Aptech Ltd, Infosys Tech, NIIT, Satyam Computer, SSI, Bharat Forge, Atlas Copco and Thermax were the most sought after stocks and hit the upper end of the circuit filter. The total volume of business was sharply up at Rs 3532.00 crore from Rs 1898.39 crore registered yesterday. HFCL was the most active share with a turnover of Rs 395.58 crore.

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While Indian markets moved up, other Asian stock markets lost ground. Asian stock markets fell on the heels of the sharp overnight slide in US technology shares but the region8217;s losses were less severe than those suffered on Wall Street. Japan8217;s share market largely resisted the downdraft from the Nasdaq8217;s plunge to end slightly lower but markets in Hong Kong and South Korea ended nearly two per cent down.