Oct. 11, 2009 (The Hindu Business Line) --
K. S. Badri Narayanan
The US stocks maintained the winning momentum thanks to Alcoa Inc (NYSE:AA) (AMEX:AA.PR) ’s financial performance and US retailers’ same-store sales data. The Standard & Poors 500 Index jumped 4.5 per cent – the biggest weekly advance in three months. The Dow average rose 4 per cent and the tech-focussed Nasdaq Composite climbed 4.5 per cent.
Despite positive cues across the globe, Indian stock markets closed on a weak note. The BSE Sensex slipped 2.87 per cent while the broader NSE’s S&P CNX Nifty tumbled 2.71 per cent.
The better-than-expected number of Infosys Technologies (NASDAQ:INFY) failed to lift the ADR (American Depositary Receipts) of the company as well other IT counters. The company beat its own as well as street’s estimates for the quarter, and raised revenue forecast for full year. Infosys posted a net profit of Rs 1,540 crore during quarter ended September 2009, a per cent higher over June quarter number. On an annualised basis, its net profit grew 7.5 per cent. However, the ADR which went up to $49.67 ahead of the result announcement tumbled to end at $47.74 against the previous week close of $47.85. The Patni Computer ADR slipped 3 per cent at $17.736 ($18.3). Wipro, though ended the week a shade better at $17.85 (17.86), it fell from intra-week high of $18.9, post Infy result. Satyam (NYSE:SAY) , however, closed the week on firm note at $6.27 ($6.21).
Strong rupee appears to have affected the sentiment for IT counters.
Dr. Reddy’s Lab jumped 8.8 per cent at $20.56 ($18.9); the company during the week announced the Indian launch of products – Stera C10 and Stera A15 – that are used in skin treatment.
Banking majors HDFC Bank (NYSE:HDB) and ICICI Bank (NYSE:IBN) gained over 3 per cent each.
Thanks to firm LME prices, the ADR of Sterlite Industries jumped 7.65 per cent at $17.03 ($15.82).
Tata Motors ADR though ended the week on firm note at $12.23 ($12.19), it reversed the direction on Friday. From a high of $13.1, it closed at $12.23 after the company announced that it raised $750 million through global depositary shares and convertible notes.
Telecom majors – Rediff.com and Sify – were the best performers during last week. The former jumped 10.4 per cent at 3.5001 ($3.17), the latter rallied 15.21 per cent at $2.5 ($2.17).
