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Tuesday April 5, 12:30 PM
The mood is red...
By Equitymaster.com
The indices continue to tumble led by weakness across sectors. The key losers belong to the auto, cement, banking, energy, software, steel, telecom and pharma sectors. Aluminium stocks too are weak. Of the NSE Nifty, only 7 stocks are in the positive, indicating the pessimistic mood among participants.
The BSE Sensex is trading at 6,553 (down 51 points) and the Nifty is trading at 2,049 (down 14 points). The rupee is trading at Rs 43.81 per US Dollar.
Among software, Infosys is slated to declare its FY05 numbers on April 14. But it's not the results that the investors will be looking out for. Rather the focus will be on the 'Outlook FY06' that the management is likely to indicate. The tone of that guidance will determine the direction for the overall sector. On our part, we continue to maintain that investors are better off by sticking to quality. Meanwhile Wipro has been served with an I.T. notice of Rs 2.6 bn. The demand is in line with what the IT department had raised earlier with relation to FY01 in March 2004, against with the company is already fighting a legal battle. The overall sector is in the red, Wipro (WIPRd.BO, news) and Infosys included.
The merge of IDBI (IDBI.BO, news) and IDBI Bank (IDBK.BO, news) became effective this month. This is likely to improve IDBI's overall cost of deposits, and give it the necessary retail focus. The merger will merge expertise both on the retail, as well as the corporate side. With the institution seeming back on track owing to the SASF for its NPAs, the focus is on growing IDBI in terms of size. The stock however, is in the red, in line with the rest of the market.
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