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STOCK REPORT

Robust January-March earnings from Infosys Technologies and softer inflation figures lifted investor sentiment on Friday, taking key indices to their highest close since 2007-08 budget was announced on February 28.

Industry bellwether Infosys set the tone for an upswing on Friday after reporting a higher than expected 70 per cent rise in net profit to Rs 1,144 crore. The company's total income increased 44 per cent to Rs 3,772 crore.

"Infosys has not drawn a very bleak picture for earnings and the market is quite comfortable with the guidance as well," Deepak Jasani, research head at HDFC Securities, said.

The company said it expects earnings per share to grow 22 per cent in 2007-08. Technology shares led the rise on Friday on hopes of similar, if-not-better, performance from other IT majors as well.

The Bombay Stock Exchange Sensex ended at 13384.08, up 270.27 points or 2.1 per cent, after touching a low of 13119.88 and a high of 13421.05 intraday.

The National Stock Exchange Nifty ended at 3917.35, up 87.50 points or 2.3 per cent. It moved between a low of 3828.45 and a high of 3924.55 in the session. The CNX Midcap Index ended up 1.5 per cent and the S&P CNX 500 Index was up 1.9 per cent.

The combined turnover on both exchanges was Rs 14,400 crore, up 38 per cent from Thursday. The BSE Infotech Index rose 4 per cent and the BSE TECk Index 3.2 per cent.

Inflation rate for the week to March 31 fell more than expected to 5.74 per cent from 6.39 per cent a week earlier. The inflation rate was 3.98 per cent a year ago.

The fall in inflation rate improved market sentiment and shares climbed another 1 per cent after the data was released around noon.

The biggest Nifty gainers were technology shares as investors bought these ahead of their earnings next week.

Tata Consultancy Services, HCL Technologies and Wipro will detail earnings during next week. They are seen reporting a 25-40 per cent growth in their bottom line for January-March. Satyam Computer Services ended at Rs 481.40, up 8 per cent, HCL Technologies, at Rs 308, up 7.2 per cent, and TCS, at Rs 1,262, up 5.1 per cent.