[R]3:00PM New York, 1:30AM Mumbai – Sensex charges ahead on strong liquidity. Infosys Technologies reported a rise of 19% in profit. Government delays fuel price hike.[/R]

The BSE 30-share Sensex ended up 0.8% or 155.8 to 18,814. The CNX Nifty edged higher at 1.5% or 83 to 5,524.9. The BSE reported a turnover of 10,603 crore rupees and NSE reported turnover of 15,866 crore rupees.

Of the 30 shares of the Sensex, 23 gained and the remaining slid. Of the BSE stocks, 1, 323 advanced, 1,378 shed while 394 remained unchanged.

Infosys Technologies Ltd reported a rise of 18.8% profit in the most recent quarter. Net profit surged 10.91 billion rupees or $271 million between July and September up from 9.18 billion rupees achieved in the comparative period.

Revenue generated from software services was up 19% to 41.1 billion rupees or $1.02 billion helped by new 48 clients which include Royal Philips Electronics NV, which placed a $250 million order with Infosys in July.

However, stock fell sharply as its revised earnings forecast for coming quarters. Infosys stock fell 7 percent to close at 1,976 rupees Thursday. The stock had risen sharply through past week.

It now estimates basic earnings per share increase between 17.5% and 18.1% to 78.60 and 78.99 rupees or $1.99 and sales increase between 165.88 and 166.48 billion rupees in the financial year ending March 2008.

The company reported a rise in its operating margin to 27.5% from 24.7 % in the proceeding April-June quarter. Net profit was in line with analysts’ expectations. The company said higher billing rates, better utilization of staff and hedging helped.

Infosys raised its prices by 1.9% from a year ago.

Government has decided not to increase fuel prices. It will now issue oil bonds worth 23.457 crore rupees to partly compensate public sector oil companies for the losses incurred on fuel sales. The Cabinet decided to issue oil bonds to Indian Oil, Bharat Petroleum and Hindustan Petroleum to compensate for the losses they would incur during the current fiscal year for not raising prices of petrol, diesel, LPG and kerosene in line with costs. The loss in recovery on fuel sales is estimated at 54,935 crore rupees and the government is shouldering 42.7% of losses through bonds liability.

Of the index stocks Mahindra and Mahindra advanced 7.6% to 813.90 rupees. It was the top gainer in the Sensex followed by ONGC at 5.7% to 1,066.5 rupees, Grasim Industries at 4.14 % to 3,800.4 rupees and ACC at 3.5% to 1,260.3 rupees.


Larsen & Toubro surged 3% to 3,486.65 rupees, Suzlon Energy gained 0.5% to 1,778.1 rupees, Tata Steel rose 0.5% to 849.6 rupees, Hindalco Industries climbed 3.3% to 175.9 rupees while DLF rose 2.9% to 18.6 rupees.

Of the Sensex shares, Bharati Shipyard shed 0.8% to 570.70 rupees after it said that Shipping Corporation of India would acquire four anchor-handling tugs and supply vessels from the company for $89.28 million.

G L Hotels was down 9.08% to 330 rupees, Infotrek Syscom slid 8.8% to 63.4 rupees, while Nagpur Power retreated 8.4% to 56.1 rupees.

Adlabs Films surged 10.4% to 714 rupees after the Bombay High Court authorized it to fold its subsidiary into the company.

DLF jumped 2.9% to 918 rupees. The company said in a statement to the Bombay Stock Exchange plans to raise $1.5 billion in the international offering and use it to buy properties in India and other markets. DLF will be added to Sensex index next month.

DLF has formed partnerships with several international companies and embarked on larger projects. The realtor is building a town near Bangalore to in partnership with Dubai World for $15 billion and working on an hotel and retail project on 15 acre site in Gurgaon near New Delhi. The company recently acquired 38 acre land complex near New Delhi and plans to develop the surrounding area of 200 acres in residential lots and business offices.

[R]2:30PM New York – Retailers report weaker than expected same store sales gains on warmer weather in September[/R]