Indian companies have had a home run this week, with positive results announced across sectors by corporate bigwigs. Indian economy has been faring comparatively well in this recession. Indian markets started picking up last week after weeks of declines on the bourses, in anxious anticipation and as immediate fallout of the Union Budget 2009. The recent spree of good shows on strength in the capital markets seems to be restoring investor confidence.

With 118 companies having declared their results as of today, the operating margins have gone up by 17.9%. Tech majors – Tata Consultancy Services and Infosys have posted double digit profits over the previous year’s figures. Manufacturing has also made its way up, with increased operating margins. The industrial output for May 2009 was already recorded as having increased by 2.7%. Larsen and Toubro, the constructions conglomerate, has seen its profits rise by 15%. Sectors such as Construction, Finance, Fertilizers, Textiles, Sugars, Food products, Power and Steel have all seen companies declaring modest to reasonable profits for the first Quarter.

The earnings reports were reflected in the Sensex gaining 400 points to cross the 15,000 mark. The results have spurred market capitalisation of companies, with investor wealth soaring by Rs 1.27 Lakh crores on Monday. Total market capitalisation of all companies stood at Rs 48.2 trillion. The increase signifies the increased confidence levels that were not to be seen for the past few weeks.

The Indian market seems to be in sync with the Asian markets that have all been up and rising, gaining significantly. Singapore is already out of recession while China is on track to cross its 10% growth target. With the announcement of corporate results, India could well be expected to have come out of its recession hangovers.