Friday April 20, 11:30 AM
Up, up and away! |
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By Equitymaster.com
The indices ascended higher during the previous hour of trade backed by the positive sentiment owing to the good results of software companies. All but three stocks on the Nifty are currently trading higher as investors continued on their buying spree. The overall market breadth is positive with the advance to decline ratio poised at 4.7 to 1 on the NSE.
The BSE Sensex is trading at 13,840 (up 303 points) while the NSE Nifty is trading at 4,062 (up 64 points). The rupee is trading at 41.93 to the dollar.
According to a leading business daily, Sintex Industries, a leading manufacturer of plastics and textiles is planning to pierce the markets of France and Japan with its range of textile products. In France the company will either enter by acquiring a design studio or will go in for a joint venture. While in Japan the company plans to enter through distributors. The company expects to market 2 m meters per annum in each of these countries. The company is currently coming up with a shirt manufacturing facility (with a capacity of 10,000 shirts per annum), which will go into operations by the end of May 2007. As the product to be manufactured is high end, the company does not aim to cater to the Indian markets in the near future. The stock of Sintex is currently trading marginally higher.
Software stocks are currently trading firm with Satyam (up 6%), HCL (HCLL.BO, news) Tech (up 5%) and IGate Global (up 4%) being the major gainers. According to a leading business daily, Infosys plans to come up with a new business model to combat the talent crunch and high attrition rates. Currently, the company employs over 72,000 people with a total net addition of 19,500 people during the fiscal year. However, like most IT companies it is facing problems of wage inflation, talent crunch and attrition rate - that stood at 13.7% for FY07. Given this situation the management plans to evolve a new business model that would be more about products and price points and not necessarily about the number of people used. The stock of Infosys is currently trading 2% higher.
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