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Journalism of Courage
Indian shares ended Wednesday at a seven-week high as investors snapped up bargains in battered tech issues, while bank stocks rebounded after the government said it would buy back equity from state-run banks at face value, brokers said. The Sensex closed 49 points up at 3,130, after reaching an intra-day high of 3,133.
The key Nasdaq index’s overnight gains sparked a recovery in technology issues, which had fallen over the past week on worries that a rising rupee would erode companies’ profits.
Technology shares were strong since the morning on the back of gains in the Nasdaq. Software bellwether Infosys Technologies spurted 5.4 per cent to Rs 2,744.50, Satyam Computer Services, climbed 6.2 per cent to Rs 166.15 while HCL Technologies, the No 5 exporter, rose 4.4 per cent to Rs 123.75.
I-Flex gained 1.9 per cent to close at Rs 847.75 on the back of an order bagged from European banks for its Flex Cube Bank Suite. Banking stocks were again in the limelight on the back of a statement from the Finance Ministry spokesperson that the government does not intend to ask for a premium from banks seeking to repay capital.
“There was renewed foreign buying in the sector, which sparked short-covering a day before derivatives contracts expire,” said Delhi-based R.K. Gupta at Taurus Mutual Fund. “Some software firms have clarified that their forecasts for the current year assume the rupee at 46.5 per dollar.” The rupee has gained 2.3 per cent in 2003, closing at 46.97/99 per dollar. Analysts expect it to continue rising on the back of robust trade and investment inflows.
The three software stocks account for about a tenth of them in the Bombay Stock Exchange index, which ended up 1.57 per cent at 3,130.46 points, its highest close since April 9. Gainers narrowly beat losers 755 to 681 in heavy trade of 135.4 million shares, the highest in May.
