Financial Daily from THE HINDU group of publications
Monday, Apr 08, 2002
Financial Daily from THE HINDU group of publications Monday, Apr 08, 2002 |
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Markets
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Stock Markets Columns - A Ringside View Market looks to Infosys guidance Jayanta Mallick
THE equity market seems to have opted for value picks among the counters outside the BSE Sensex basket. This was evident form the advance made by the BSE-200 compared to the Sensex, which saw a moderate net gain of around 32 points over the previous week. According to market players and analysts, the overall sentiment remains just about positive this week. The market will look forward to the Infosys fourth quarter results, which is expected on April 10. "The profit projection for the 2002-2003 will guide the market mood vis-a-vis the tech sector as a whole," a NSE broker pointed out. During the last week, foreign institutional investors preferred to restrict their purchases. "The political uncertainty and Gujarat situation continue to cause worries for foreign investors," commented a prominent institutional broker. With the year-end corporate results round the corner, market is awaiting the emerging outlook and profit guidance. Sectorally, last week saw the PSU stock prices ruling firm on divestment trigger. The APM dismantling provided additional impetus for the oil PSUs. "The forthcoming divestment of IPCL may drive the stock upward in expectation that IOC will provide enhanced valuation as in case of IBP," a BSE broker said. For ONGC, the West Asia crisis and the rise in crude prices proved to be a positive indicator for its stock prices on enhanced revenue prospects. The tech sector, despite weakening signals from the US market, did not decline substantially. Deutsche Bank last week improved its rating of the tech sector and indicated purchase recommendation for the stocks of Infosys, Satyam Computer Services and HCL Technologies. The auto sector stock, particularly the two-wheeler segment, is seeing buoyancy on increased sales figures. Tata Engineering, Ashok Leyland, Hero Honda and Bajaj Auto are likely to attract investor interest. The possibility of softening of interest rates may also drive the active bank stocks, brokers felt. "The current trend is to sniff the news and development in specific counters, apart from the sectoral trend. Thus stocks such as KPIT Infosystems, Cipla, Balaji Telefilms and Andrew Yule have been picked up," a CSE broker said. The market is also affected by rumours over some possible developments. The Cadbury and Kodak India stocks were cases in point last week. "In a sensitised and broad-based market which is looking desperately for triggers, this is not unusual," an observer said.
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