Markets Close In Green, IT Stocks Surge On TCS Results

As we expected, the market ended the day in gains. The BSE Sensex ended with 110 points' gains, i.e. 0.65%. TheNifty index closed 22 points or 0.42% higher. IT stocks were on the buyers’ radar, and the IT index gained 5.11% by the close of trade.

The European indices opened in the green and have continued to trade in the positives. The Asian indices also gave up the negatives by closing time. Hang Seng and Shanghai closed in green, while Nikkei trimmed the losses.

Meanwhile, the Supreme Court today refused to grant 400 days to the govt. to complete the process of fresh 2G auctions. The court, however, has extended the deadline from June 2 to August 31, 2012.

After the interest rate cut in the last week, the markets are concerned on the high inflation levels in the country. Besides, the rupee has gone further down to 52.82 per dollar, due to which, the worries for the market are fuelled.

On the sectoral front, the IT index has increased the most on positive results posted by TCS and HCL. Now, the markets will await better earnings from Wipro, and on the back of this, the scrip has surged by 4.41%. The sentiment was so positive that Infosys was also up 1.58% by the end of the day. The Teck index was also up by 6.47%. Metals and Power added about 0.5% each to yesterday's closing. The rest of the sectoral indices remained flat, with Capital Goods losing by 1.3%.

Among the Sensex shares, Tata Power, Hero MotoCorp, Hindalco, Tata Steel, Sterlite, etc. gained. L&T, on the other hand, lost the most today, i.e. by 2.63%. Bharti Airtel lost 2.02% after the increased allocation fees for the 2G spectrum. DLF has shed a further 1.46%, as it will be out of the Sensex stocks by June 11, 2012. GAIL, Bajaj Auto and Jindal Steel were also all down by over 1%.

In individual stocks, NALCO was up 7.51% and Pantaloon Retail was up 4.6%. Other stocks like Bata India, Colgate Palmolive, SAIL, etc. were also up by nearly 4% each the end of the day. The losers list is topped by United Phosporous. Ambuja Cements too is yet to recover from its Mar 2012 quarter results.

The shares of Colgate Palmolive attained a new high today. The top turnover was seen in companies like TCS, Infosys, SBI, L&T, Bharti Airtel, etc. High volumes were seen in Britannia Industries, Cummins India, Polaris Financial Technology, Titan Industries, TCS, Idea Cellular, etc.

The market sentiment, which was negative in the morning, improved by the end of the day. However, a total of 50% stocks declined against an advance in 46% of the stocks. 4% stocks remained unchanged.

IT giant, TCS, helped the Sensex to close in the positives today. Besides, it has also changed the mood of the investors, especially that of the IT stocks. We advise investors to pick individual stocks from different sectors, rather than remaining bullish on one sector. The inflation and rupee worries are additional factors that are haunting the markets.