Indian Stocks Week-in-Review: Telecom and Internet Stocks Lead the Way

Videsh Sanchar Nigam Ltd. (VSL) led the way this week with a gain of 13.36%. Another Telecom stock Mahanagar Telephone Nigam Ltd. (MTE) gained a 7.08% despite MTNL net profit declining 38% in FY`06.

Rediff (REDF) gained 12.90% as the company launched its instant messenger in Hindi language. Also, Mr. Ajit Balakrishnan, chairman and CEO, will ring the opening bell at NASDAQ stock market on Monday, October 9th. Sify Ltd. (SIFY) also gained 6.65% despite the fact that that their e-ticketing deal with Indian Railway Catering and Tourism Corporation [IRCTC] wasn’t exclusive. IRCTC will also sell tickets via post offices and State Bank of India’s ATM’s and branches.

It also seems that both Internet companies benefited by the news that Yahoo (YHOO) is looking for acquisitions and/or partnerships in India. According the Business Standard, Yahoo! is in discussions with various Indian companies for partnerships and acquisitions, and a decision is expected in the next 6-10 months.

Meanwhile, both Indian Banks show now sign of stopping. HDFC Bank (HDB) ended the week up another 4.01%, while ICICI Bank (IBN) closed up 2.41%. HDFC bank is at its 52-week high while ICICI Bank is not very far from it.

Tata Motors (TTM) closed the week up 4.04%. Tata Motors reported total sales of 49,157 vehicles (including exports) for the month of September ‘06, a growth of 23.8% YoY.

All the IT stocks closed the week up except Infosys Technologies (INFY).

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