Infosys Results Weighs Heavy on the Markets

The Global Markets trade in a negative territory this morning. Most U.S. stocks advanced, erasing an early decline, as the House approved a spending bill that will avert a government shutdown and on investors’ Optimism about higher-than-estimated corporate earnings. European stocks declined for the third time in four days as yields on Portuguese and Greek government bonds surged to records amid concern the countries may have to reschedule debt payments. This morning Asian stocks fell pared declines after a China reported that the world’s second largest economy grew more than forecast and the rate of inflation exceeded economists estimates, increasing speculation that the government will need to do more to contain growth. In commodities, Oil gained for a third day in New York, after a Saudi Arabia-based economist said the holder of the worlds biggest crude reserves cut production this month, signaling supply may shrink. Gold gained to a record and silver climbed to the highest level in 31 years as inflation in China accelerated more than forecast, underscoring the challenge that central banker’s worldwide face in combating rising prices. Copper gained for the first time in five days, rebounding from its worst run since January, as some investors remained positive on the outlook for demand this year. The markets have shed considerable ground in early trades on the back of disappointing numbers from Infosys. The IT major reported slower growth, much lower than the consensus estimates. The Sensex which opened on a rather tepid note, has seen a sharp cut and is now down 158 points at 19,538. The NSE Nifty has declined 45 points to 5,865. The BSE IT index has dropped nearly 4%. Infosys has now tumbled nearly 7% to Rs 3,080. Wipro has plunged 4.5% to Rs 452, and TCS has declined 2% to Rs 1,185. HCL Tech has also lost considerable ground.