Flat Opening In Markets, Wipro Sheds 7% On Muted Guidance

Like yesterday, the Indian markets have opened flat this morning. IT major, Wipro, has come out with its Mar 2012 quarter results, where it posted 1.7% sequential growth in its net profits to Rs 1481 crore. The stock, however, has tanked 7% after the company gave a muted guidance for the next quarter. TCS, which surged yesterday on its robust yearly guidance, has shed about 3% at this hour.

Overnight, the European and US stocks closed in the green over better economic data in the US and strong earnings posted by one of the European banks.

The peer Asian markets that recovered yesterday are currently trading in the positives. Hang Seng and Shanghai are trading with marginal gains, while Nikkei has surged by nearly 1% after the positve economic data.

Among the Sensex stocks, Bharti Airtel, which came under pressure yesterday after the TRAI set higher prices for the 2G auctions, has surged by 2.35%. Auto stocks such as Bajaj Auto, Maruti Suzuki, Tata Motors and Hero MotoCorp have also surged.

On the sectoral front, the IT index, which was up by 5% yesterday, is the top loser at the moment. The index has lost 1.68% mainly after the muted guidance from Wipro. Index heavyweights TCS and Infosy have also lost about 1% each. The Auto index is up 0.69%, as the markets expect better earnings from companies in the sector, which recorded better sales in the last 3 months. The Metals, Bankex and FMCG indices are also up by 0.4% each.

In individual stocks, United Spirits is up by 3.7% after its promoters clarified that they will not sell their stake in the company. Wockhardt is also up 3.24% after the company lauched a drug in US with an exclusivity period of 180 days. Coal India is trading flat after NTPC refused to sign the fuel supply agreement. NTPC, on the other hand, has fallen marginally from its yesterday’s closing. Sesa Goa has reported a drop in its earnings, but the stock is up after the board recommended the final dividend.

Companies like Zydus Wellness, Wipro, Sesa Goa, Aeonian Investments and Premier Ltd all have recommended dividends today.

Wipro has shown rise in volumes at the moment. Britannia Industries, Honda Siel Power Products, Lupin, Bajaj Auto, MindTree, Bata India, etc. are also showing a rise in volumes. On the other hand, companies like Wipro, SBI, TCS, etc. have reported a good rise in their turnover.

Bata India has recorded a new high over the positive sentiment in the counter. Kajaria Ceramics has also attained a new high. Provogue India, Kingfisher Airlines, Welspun Investment, Welspun Global, etc. however, are trading at new lows.

The market breadth, which indicates the overall health of the market, is positive as more stocks have advanced.

Ahead in the day, Alfa Laval, BASF India, India Cements, LIC Housing Finance, Kirloskar Brothors, Nestle India, Sterlite Industries, Swaraj Engines, YES Bank, etc. will report their Mar 2012 quarter numbers. Investors would do well to listen to the management commentary for better guidance.

The markets will remain volatile in anticipation of the derivatives expiry tomorrow.