Thursday January 17, 11:30 AM
Results bring cheer... |
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By Equitymaster.com
The sentiment seems to have turned around. The markets are back in the black. Technology and auto stocks are leading the recovery. Optimism towards the technology sector could be fueled by the superb performance posted by Digital and Hughes. The volumes are too are on the higher side.
The BSE Sensex is at 3,355 (up 6 points) and the NSE Nifty is at 1,094 (up 4 points). The rupee is trading at Rs 48.31 per US dollar.
Digital (up 4%) posted a strong 8% sequential growth in revenues and a 12% growth in bottom line beating all expectation. This effectively means that the company will revise its revenue guidance for FY02 from the pervious 50%. If the company has a sequentially flat 4QFY02, it will clock about 77% topline growth in FY02. Hughes too posted very strong sequential growth numbers. The highlight of the performance was a 97% sequential jump in product sales. However, the management revising its topline guidance southwards, once again, marred their performance. The topline is now expected to grow by 17%-19% as against a pervious guidance of 25%-35%. The stock is up by 2.4%.
There seem to be a breather at last for PC manufacturers in the country. PC prices are expected to go up by Rs 2,000 to Rs 3,000 in the next few months. This is due to the fact that memory chip prices have shot up by more than 100%. The MNC's that have a 36% market share have decided to increase prices. A hike of Rs 1,000 has already taken place in the assembled markets. HCL (HCLL.BO, news) Infosystems is watching the situation but is likely to follow suit. The stock is up by 1.4%. Wipro (WIPRd.BO, news) that will declare its results tomorrow is up by 1%.
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