Volatile gains...

The indices continued their northbound journey in the previous trading hour amidst high volatility as value buying in index heavyweights continued. However, profit booking at higher levels is being witnessed, clearly showing lack of investor confidence. Amongst the gainers are aluminium, banking, cement, pharma and power, while software and select FMCG stocks are pulling the markets down.

The BSE Sensex is trading at 6,207 (up 72 points) and the Nifty is trading at 1,921 (up 12 points). The rupee is trading at Rs 43.76 per US Dollar.

FMCG stocks are trading a mix bag. Bellwether HLL is taking the lead and is trading up by 3%, followed by Nirma (2%) and Colgate (1%). Among the losers are Godrej Consumer (2%), Pidilite (2%) and Essel Propack (marginally down). Laminated tubes major Essel Propack announced its 1QCY05 results yesterday, delivering a good 25% topline growth on its consolidated worldwide figures. Margins continue to be under pressure resulting in a bottomline growth of 9% Y-o-Y. Its Indian operations continue to face competition and reported 10% topline growth and a 2% dip in profits Y-o-Y. Every third tube sold in the world is manufactured by Essel and is well on its way to achieve its mission of making every second laminated tube globally. The company recently acquired Telcon Packaging in U.K who has a 12% market share in the country.

Software stocks continue their southbound journey with TCS (7%), CMC (4%), Hexaware (4%) all trading in the red. However, Satyam (2%), Infosys (1%) and HCL (HCLL.BO, news) Infosystems (1%) are trading higher. HCL Infosystems announced its 3QFY05 results yesterday posting an 18% rise in its consolidated net profits. The company has announced a stock split from Rs 10 per share to Rs 2 per share. The revenues of the company stood at Rs 20 bn as against Rs 11 bn in the corresponding quarter last year, reflecting a topline growth of 69%. Revenues from the computer division grew 27% to Rs 5.3 bn while that of office Automations and Telecom Communication grew 92%. This takes the company's consolidated revenues to Rs 55 bn for 9mFY05.

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