Volatile movement

The indices are displaying volatility, going down and then again recouping gains. While technology majors are bearing the brunt of investor wariness, cement, engineering, banks and oil PSUs are also in the red. There is however, optimism towards FMCG and commodity majors.

The BSE Sensex is trading at 6,205 (up 70 points) and the Nifty is trading at 1,919 (up 10 points). The rupee is trading at Rs 43.76 per US Dollar.

TCS continues to be on the receiving end of investor ire. The stock had lost over 8% yesterday and is down over 8% once again currently. The company reported flat topline growth QoQ and over 34% decline in profits in March quarter. This was partly on account of an additional Rs 1 bn payout to employees as incentive. Though sentiment on the stock looks negative currently, we believe its just an overreaction in the short term. Infosys and Wipro (WIPRd.BO, news) are however, marginally up.

Among media stocks, TV18 is up over 2%. The news of a key anchor at NDTV leaving and joing the TV18 group, to spearhead its initiative on coming out with a general and current affairs news channel has peeped the sentiment towards the company. NDTV on the other hand is in the negative owing to one more impending competitor in its space. Adlabs is down marginally, despite the news that the promoters have decided to expand capital base and divest 7.5% of their stake to Bear Stearns Asia at Rs 150 per share. The capital is solely for expanding its multiplex reach across Indian cities.

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