Thursday April 19, 02:30 PM
Selling pressure continues... |
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By Equitymaster.com
Although still into the negative, the markets managed to recoup some of the losses during the previous hour of trade. While the benchmark indices are reeling under selling pressure, select banking, FMCG and pharma stocks are finding favour. The overall market breadth is negative with losers outnumbering gainers by a ratio of 1.8:1 on the NSE.
The BSE Sensex is trading at 13,568 (down 104 points) while the NSE Nifty is trading at 3,982 (down 30 points). The rupee is trading at 42.20 to the dollar.
Software stocks are trading weak with Infosys and Satyam (each down 2%) and TCS (down 1%) being the key losers. HCL (HCLL.BO, news) Tech has signed an agreement with Riyadh-based economic offset program company Advanced Electronics Company (AEC) to implement IT projects in Saudi Arabia. Under the agreement, AEC and HCL Tech will jointly work to implement and execute integrated IT solutions and services for business transformation. This will cover the end-to-end of the IT spectrum including systems integration, package implementation, application development and maintenance, IT infrastructure management and BPO. This strategic agreement brings the company's pioneering remote IT management delivery model to the Middle East and offers the most comprehensive IT folio in the Saudi market. The stock is trading marginally down.
Cement stocks are trading a mixed bag with ACC (down 3%) being out of favour, while Ambuja Cement (up 1%) is trading firm. ACC, the second largest cement manufacturer in the country, has announced robust 1QCY07 results. The company has reported a topline growth of 26% YoY and a robust bottomline growth of 55% YoY during 1QCY07. Even after excluding other income and extraordinary income, the net margins have expanded by 510 basis points (5.1%). Though the input costs have scaled up, operating margins stood at 30% for 1QCY07, mainly driven by better sales realisations. The growth in the bottomline has also been aided by the reduction in finance charges by 79% YoY. The company has reported strong numbers on the back of a favorable pricing scenario.
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