Global cues boost markets yet again

Thu, 21 Apr Closing

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   01:30 pm   

   RoundUp   

Benchmark indices in the Indian stock market remained range bound during the final couple of hours of trade. However, thanks to gains recorded earlier in the day, they managed to close the day strongly in the positive. BSE-Sensex edged higher by around 130 points whereas NSE-Nifty finished higher by around 30 points (up 0.6%). Amongst the smaller indices, both BSE Midcap as well as BSE Small cap index ended nearly flat. More than two stocks gained for every one that declined on the Sensex today.

While most of the other Asian indices also closed in the positive today, Europe too is witnessing positive trend currently. Rupee was trading Rs 44.3 to the dollar at the time of writing.

Markets rose higher seemingly yet again on the back of global cues. Bloomberg reported that US companies, especially tech stocks are doing well and that's helping to instill confidence. It should be noted that earnings trend at big companies like Apple and IBM have become useful pointers these days to know whether businesses are doing discretionary spending or not. And things are certainly looking good on this front and this is helping have a good rub off effect on stocks across the globe.

IT behemoth TCS announced its full year results today. Its net sales grew by 5.1% QoQ in 4QFY11, largely driven by 2.9% growth in volumes. For the year ended March 2011, sales grew by 24.3% YoY on account of strong volume growth of 29.7%. Operating margins improved by 0.5% QoQ to 30.5% during the quarter as compared to the 30% seen during the previous quarter. This was mainly due to slightly lower cost of sales (as a percentage of sales). For the year ended March 2011, operating margins expanded by 0.9% YoY. As far as net profits are concerned, the same grew by 10.7% QoQ during the quarter. This was mainly driven by lower tax expense during the quarter. For the full year FY11 (year ended March 2011), net profits increased by 29.5% YoY. This was mainly driven by the growth in revenues and other income. The company also proposed an interim dividend, which took up the total dividend for the year to Rs 14 per share (yield of 1.2%). The stock however closed the day 3% lower.

Tyre major Apollo Tyres was in the thick of action today, closing the day with gains in the region of 5%. The positive sentiment was perhaps on account of news in a leading daily that the company is looking to step up after-market sales of its branded tyres in Europe to 60,000-65,000 levels per month. It should be noted that the company is currently selling approximately 50,000 'Apollo Tyres' a month in Germany, the Netherlands, the UK and Italy. This does not include sales of 'Vredestein' branded tyres manufactured by its European outfit Apollo Vredestein BV (AVBV). Apollo tyre was the first major made-in-India brand to be launched in Europe last year. Efforts are also on by the company to enlist itself as an OE supplier to automakers in Europe. Quite a few European car makers like VW, Audi and Skoda already use Apollo tyres in India.