Infosys Technologies proved the biggest gainer in the BSE Sensex today after the severe hammering it received over the past few sessions.

The scrip of India's second largest software exporter climbed 2.83% to Rs 2,966 by 13:40 IST. By then, it notched up volumes of 1.78 lakh shares on BSE.

The current rise comes as a virtual relief for the heavyweight tech counter, having lost 34.5% to Rs 2,884.35 from Rs 4,398.90 between 7 April and 15 May 2003. The selling was set off as a result of a muted guidance from the company for the year ended 31 March 2004.

Operators are at the Infosys counter today. Players think that certain IT counters may well be good choices after their recent battering. Tech stocks have also been spurred on by the gains in the US markets on Thursday. US stocks ended higher on Thursday, with buyers resurfacing after two days of declines amid encouraging comments from IBM and other technology companies and some positively-perceived economic reports. The technology push resulted in stronger gains for the Nasdaq composite (up 16.48 points to 1551.38) than for the Dow Jones industrial average (up 65.32 points to 8713.14).

Among Indian ADRs listed on the US markets, Infy, the Infosys Tech ADS, gained $ 1.41 to $ 42.79. Wit, the Wipro ADR, rose $ 0.44 to $ 20.76 and Say, the Satyam Computer ADS, added $ 0.40 to $ 8.80.

Other selective frontliners and second-rung stocks like Wipro (up 1.19% to Rs 916.70), Satyam Computer (up 1.08% to Rs 177.40), VisualSoft Technologies (up 3.16% to Rs 147.10), Sonata Software (up 3.38% to Rs 12.25), Mascot Systems (up 2.14% to Rs 105.10), Kale Consultants (up 9.72% to Rs 31.60), Hexaware Technologies (up 4.71% to Rs 112.25) and Aztec Software (up 3.25% to Rs 15.90) gained today from action by operators, apart from Infosys.

The company had set off broad selling in techs with its muted guidance along with results on 10 April 2003. The software bellwether forecast a 11-13% growth in net earnings and a 21-23% rise in revenues on the back of 27-30% increase in volumes and a 4-6% fall in billing rates for FY 2003-04. The company's estimated rise in net profit fell significantly below market expectations of between 18% and 19%. The indication of continued pricing pressures also came as a major negative surprise, and, against the overall assumption of a 2% margin decline in FY04, the guided numbers implied a 4-4.5% drop.

Infosys is the benchmark for the general trend in the software sector. Thus, if Infosys is cautious about its future earnings, then, obviously, the overall growth rate of the software sector may also be discounted. Infosys' muted guidance also dragged the BSE IT Index by 26% to 1,054.03 on 15 May 2003 from 1,425.67 on 7 April 2003.

For the fourth quarter ended 31 March 2003, Infosys Technologies registered a 23% rise in net profit to Rs 259 crore (Rs 210.3 crore) on net sales of Rs 1,020 crore (Rs 680.1 crore). This quarterly net profit growth came in on the lower side of expectations by capitalmarket.com -- a 23-33.6% rise in net profit to Rs 259-281 crore and sales of between Rs 980 crore and Rs 1,043 crore, up 44-53.3%.

More Business News