Sensex Extends 3-day Rally; TCS Net Soars 23%

Devan Biswas
21 Apr, 2011
New York City

The Sensex index in Mumbai trading gained 0.7% after TCS reported 23% increase in the quarter to March. Rupee advanced to a two week high and gold and silver soared to a record high in Mumbai trading. Muthoot Finance attracted strong interest for its initial public offering.

[R]5:00 PM Mumbai – The Sensex index in Mumbai trading gained 0.7% after TCS reported 23% increase in the quarter to March. Rupee advanced to a two week high and gold and silver soared to a record high in Mumbai trading. Muthoot Finance attracted strong interest for its initial public offering.[/R]

Stocks in Mumbai closed higher after markets in Asia gained tracking the advance in New York and European markets. TCS reported higher than expected earnings and gold and silver surged to a new record.

The wholesale price index in India increased 0.2 to 190.9 from 190.6 for the previous week. For the year to the week inflation increased to 11.96% compared to 11.40% in the previous period.

The Sensex index increased 155.25 to 19,626.23 and the Nifty index added 33.05 to 5,884.70.

The rupee edged lower higher by 14 paisa to Rs 44.32 and the price of ten grams of gold increased 0.5% to Rs 22,776. The price of a kilo of silver increased 2.4% to Rs 70,672.

Muthoot Finance public offering on the first day of offering of 1.8 crore shares attracted 45.07 crore bids from institutional investors. Foreign investors bid 29.2 crore shares.

Stock Movers

Bharat Heavy Electricals dropped 4.7% on no news and led the decliners in the Sensex index.

Banks extended gains for the fourth day in a row after HDFC Bank, ICICI Bank and Yes Bank reported higher than expected earnings rising loans.

HDFC Bank increased 1.4%, ICICI Bank added 0.3% and State Bank of India advanced 2%.

TCS declined 2.2% after the largest outsourcing services provider said fourth quarter net increased 23% to Rs 2,623 crore and revenues increased 31% to Rs 10,157 crore.

The net was lifted by non-operating income 39% to Rs 2,260 crore. The company hired 11,700 employees in the quarter and plans to add 60,000 people in the current fiscal year. The company employs a total of 198,614 at the end of March.

Chief financial office S. Mahalingam said that all industry verticals showed positive growth in the full year ending in March and in the fourth quarter growth was developed by customers in the U.S. and Europe and strong contribution Asia Pacific, Middle East and Africa.

Other software service providers declined after Rupee strengthened for the second week in a row.

Wipro declined 0.15% and Infosys increased 0.13%. HCL Technologies declined 0.8% after surging as much as 10% in the previous session.

Metals and resources linked companies increased after commodities rose in New York and London. Hindustan Zinc increased 3.1% after fourth quarter sales increased 28% to Rs 3,195 and net rose 43% to Rs 1,771.27.

Tata Steel increased 0.6% after the company said it sold 51% of its 77.5% stake in Tata Refractories to Japan based Krosaki Harima Corporation that values the company at Rs 1,130 crore.