Infy fails to break momentum, Nifty above 5400

Today's major news

Infosys Technologies falls on disappointing Q1 nos; the stock closes 3.44% lower

Subex spurts on European order win; the stock ends 4.01% higher

Network18 surges on strategic pact; the stock closes 4.56% higher



Global signals

European shares rose on Tuesday (July 13, 2010) to extend its winning streak on the sixth consecutive day after Alcoa got the second quarter US earnings season off to a strong start.

All the major Asian indices closed in the negative territory except Straits Times and Kospi index that rose marginally by 0.12% and 0.06% respectively. SGX Nifty closed 31.50 points higher.

The US stock index futures signal higher opening at the Wall Street on Tuesday as the corporate earnings season gathers pace. The investors will keep an eye on the earnings of Intel Corp and Yum.

Indian indices

The information technology (IT) bellwether Infosys Technologies’ poor Q1 results did not hinder the markets winning streak. The domestic markets continued its momentum for the fourth consecutive session. The ratings agency Moody's Investor Service cutting Portugal’s ratings by two notches to A1 also could not weigh on the markets. The realty shares surged on speculation that the government will soon announce a hike in the foreign direct investment (FDI) in the real-estate sector.

The Sensex started the session 29 points down tracking negative Asian markets. The index drifted lower in the early trades as index heavyweight Infosys slipped putting pressure on the other IT stocks. The Sensex traded in a narrow range in the morning trades. The index hit the day’s low of 17856 in the early afternoon session as the IT stocks widened its losses. The Sensex erased all its losses to turn positive in the late afternoon session to touch the day’s high of 17998 as the European stocks and US index futures rose.

At the closing, the Sensex settled at 17986, 49 points higher. The Nifty shut above 5400 levels at 5401, 18 points higher.

Market sentiment

The market breadth was positive. Of the 3,001 shares traded on the BSE, 1,694 shares advanced whereas 1,180 shares declined. Hundred and nineteen shares remained unchanged

Sectoral & stock screening

The realty stocks continued to draw the investor interest on the second straight session, with the BSE Realty up by 4.03%. BSE consumer durables (CD) advanced by 2.41%. IT stocks were under pressure, with the BSE IT down by 2.68%. BSE TECk declined by 2.25%.

In ‘A’ group stocks, Jet Airways was the star stock of the day, up by 7.03%, followed by Max India that was up by 6.40% and Unitech that rose by 6.26%. In the losers’ list, Idea Cellular was down by 6.12%, followed by Infosys Technologies that fell by 3.44% on poor Q1 results and Mahanagar Telephone Nigam Ltd (MTNL) that shed 2.33%.

Viewing volumes

India’s second largest developer - Unitech saw highest trading with over 1.08 crore shares changing hands on the BSE, wind turbine major - Suzlon Energy (1.00 crore shares), industrial finance company - IFCI (0.57 crore shares), Aditya Birla group telecom firm - Idea Cellular (0.40 crore shares) and steel maker - Sesa Goa (0.31 crore share).