Mum’buy’kars takeover St, propel Sensex close to 11K 
The Economic Times, July 13, 2006

BSE-30 UP 316 PTS AT 10,930 

Mumbai: The bloodshed caused by serial blasts on Tuesday did not spill over to Dalal Street, as investors chose to look at the brighter side of things. Better than expected first quarter earnings and an even better guidance for FY07 from technology heavyweight Infosys Technologies sent equities shooting up 3% amid good volumes. Sensex came close to nudging the psychological 11,000-mark before settling at 10,930, up 316 points. Nifty gained 80 points, or 2.5%, to close at 3,196. 

Infy’s stellar performance turned the spotlight on technology companies, which were the major contributors to Wednesday’s rally. The stock led the rally in the technology sector, rising 7.5% to close at Rs 3,386.45. Expectations of a similar performance lifted Satyam, Wipro and TCS by 4-7%. 

Elsewhere in Asia, the trend remained mixed. Nikkei-225 shed 1.5% on concerns that a sustained rise in the yen will adversely affect exporters. Hang Seng, however, ended 0.2% higher while Kospi ended nearly 4% down. 

Traded turnover on both exchanges was around Rs 10,570 crore, 40% higher than Tuesday. This despite attendance at many brokerages being affected. According to market sources, FIIs bought a major chunk of front-rung IT stocks on Wednesday. Based on provisional figures released by BSE, FIIs were net buyers of Rs 276 crore. 

“The reality of life is that such events (bomb blasts) will not have any impact on economic developments in the country. Wednesday’s rally was backed by positive sentiments over good Infosys numbers and guidance,” said Ambit Capital CEO Manish Kanchan. He, however, said investors should use the current rally to exit from laggard stocks and buy quality stocks with strong fundamentals. 

Contributing significantly to the 316-point rally, Reliance Industries climbed 4.8% to Rs 1,098. According to estimates of ICICI Securities, the company is expected to post 5% rise in net profit while revenues will grow 40% in the quarter ended June 30. 
Leading cement stocks extended Tuesday’s gains on hopes of strong first quarter numbers. Gujarat Ambuja Cement, Grasim Industries and ACC rose 2.1-3.2%.