Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

IT stocks set Sensex alight
Fri, 25 Mar Closing

IT stocks helped buoying the indices to reach even higher levels during the final few hours of trade. As a result, the Indian stock market closed in the green once again today, ending the week on a positive note. The BSE-Sensexclosed with gains of around 465 points (up 2.5%) whereas NSE-Nifty logged in gains to the tune of 132 points (up 2.4%). Gains were also seen in BSE Midcap and BSE Small cap indices as both closed higher by around 1% each. However, these smaller indices could not hold a candle against the largecap's performance today. Markets had a good trading week, with four days of straight gains.

Most Asian stock indices closed in the positive today, with Europe also opening in the green. Rupee was seen trading at Rs 44.65 to the dollar at the time of writing.

IT stocks had a field day today, with large-caps like Infosys, Wipro, HCL Tech and TCS seeing strong gains. These stocks saw gains of over 3%, with Infosys gaining around 5%. Most of these gains were on account of NASSCOM, the apex body of IT and ITES industry, requesting the government to extend the Software Technology Parks of India (STPI) scheme for an additional year. These benefits were supposed to come to a close by the end of FY11. And if these benefits are extended, it would help sustain the growth momentum of the US$ 76 bn Indian IT industry.

NASSCOM has also requested the government to rethink on the imposition of Minimum Alternate Tax (MAT) on companies that were set up in SEZ (special economic zones). As per the latest Union budget, the finance minister even brought SEZs under the MAT regime. In anticipation of these measures being considered, most IT stocks ramped up significant gains.

Leading commercial vehicle (CV) manufacturer Tata Motors became the first Indian company to produce 100,000 CVs in a single year (FY11). In the current, with a lot of pent up demand coming to the fore, auto manufacturers had a record year in terms of sales volumes. Higher interest rates have not yet had an impact on the CV industry. However 8 rate hikes, in less than a year, may make financing vehicles more expensive.

Increased input costs may also have an adverse effect on the industry growth rate. The sector wide growth rate was around 20-22% in FY11, which is expected to slow down to 10-15% in FY12, according to Tata Motors.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "IT stocks set Sensex alight". Click here!

1 Responses to "IT stocks set Sensex alight"

Damodar Nawka

Mar 26, 2011

I find the Equitymaster website one of the best in
financial sector websites which gives all informations
aboutv equity/Mutual Funds etc within a few seconds


Congratulations

Damodar Nawka
Bangalore

Like 
  
Equitymaster requests your view! Post a comment on "IT stocks set Sensex alight". Click here!
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.