A week of sharp swings for the markets

Rex Mathew
23 April 2005

It was a very eventful week for the markets as three software majors came out with contrasting results. While TCS disappointed in a major way and Wipro was par for the course, Satyam surprised the market with a strong set of numbers.

On Monday, the markets extended the weak trend from the previous week and the indices lost over a per cent each following the weakness in US markets and the Asian meltdown. Indian markets were better off when compared to other Asian markets like Japan which lost over 3 per cent.

First out with results was TCS on Tuesday and the market was really disappointed with the drop in profits for the last quarter ended March 2005 as compared to the previous quarter. The flat revenues and drop in operating margins saw the stock being beaten down over 8 per cent on that day. The markets, which were trading firm, declined after the results were announced.

Wednesday saw sharp swings in the indices as the weakness in tech stocks were countered by buying in old economy stocks. The indices gained over a per cent as markets shrugged of some of the disappointment. Gujarat Ambuja announced a liberal one for one bonus and also a stock split, which helped overcome less than encouraging results from the company.

Thursday was Satyam's day as the company, least fancied among the fabulous four, surprised with its results. Strong growth in last quarter profits and revenues as compared to the third quarter and a confident guidance saw the stock gaining over 5 per cent.

On Friday, the last of the lot Wipro generated some excitement with a one for one bonus even as results were nothing spectacular. A bounce back in tech stocks like HCL Tech and TCS along with some of the banking stocks helped the indices to close the weak on a positive note.