Software leads the way...

Backed by positive global cues and good march quarter numbers by a leading domestic software company, the Indian indices opened on a strong footing. However, profit booking at higher levels, on the back of the gains witnessed over the last couple of trading sessions, has brought in some volatility in early trades. Barring auto, banking and steel, most sectors are trading firm.

The BSE Sensex is trading at 6,324 (up 25 points) and the Nifty is trading at 1,963 (up 13 points). The rupee is trading at Rs 43.74 per US Dollar.

3i Infotech made its debut on the Indian bourses today. The stock had a strong opening on the NSE, up 18% over its offer price of Rs 100 per share. However, soon profit booking set in at higher levels that has seen the stock erode most of its gains and is currently trading with mere 3% gains. 3i Infotech is an IT company focusing mainly on the banking, financial services and insurance (BFSI) vertical. It was incorporated in 1993 as a back-office IT services provider to the ICICI (ICIC.BO, news) Group and has since metamorphosed into a technology company providing IT services and solutions to over 500 clients in over 30 countries. The company earns revenues from products as well as IT services (to BFSI verticals). Its strategy is different vis-à-vis other software companies, as it is mainly focused on India and earns the largest proportion of its revenues from India. As far as the other software stocks are concerned, the key gainers include Wipro (7%), HCL (HCLL.BO, news) Tech (5%), MphasiS (3%), Satyam (2%), Infosys (2%) and TCS (1%).

The US indices were on fire yesterday with the Nasdaq, Dow and the S&P 500 gaining 3%, 2% and 2% respectively. A mix of good economic news and upbeat earnings reports from US corporates help soothe investor sentiments who bargain hunted for stocks on Thursday taking advantage of the recent weakness in the US markets. Better than expected jobless claims report and a positive manufacturing conditions report, which helped provide some relief to investors about the US economy were the key drivers of investor sentiments yesterday. Further, the optimism was strong enough to set aside the warnings given by the Fed chairman with respect to the burgeoning US deficit and also crude oil prices, which have once again breached the US$ 54 per barrel mark after nudging the US$ 50 mark just a few days back. As far as the Asian indices are concerned, most of them are trading in the positive despite having given up some early agins.

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