It’s Infosys Result Today

It’s Infosys result today. The seasoned traders must have switched on TV to see expert’s comments on the result. There has been a history of Infosys result influencing the broader market indices. The December quarter results saw Infosys surging by 17% on result day pushing the market up by 0.76% in the morning. The March quarter result however saw the stock showing a gap down opening pulling down the index by 1.4%. What’s on cards today will be clear shortly as Infosys declares the result before the market hours. The commentary of the N R Narayana Murthy would also be very important and hence the result should be carefully watched by the traders. Note that Infosys has 7.33% weight in the Sensex.

The Markets yesterday found a support in Bernanke’s comments who a day before yesterday said that Fed’s monetary policy will remain accommodative. Global markets gave huge thumbs up to his dovish tone. Bernanke also said that Fed will not be in any rush to firm up the interest rates even if the threshold of 6.5% unemployment rate is achieved.

It should also be noted that after absence of many years finally the investors have started to see a support in the US equities. There is a huge exodus from bonds to equities taking the stock markets higher. Mary Ann Bartels, chief investment officer and portfolio strategist for BofA USA believes that the USA is now close to a long lasting bull range that was seen earlier from 1982 – 2000. She believes that the US stocks would do well even though interest rates would rise going ahead. She has said that the economy and corporate earnings are improving and also believes that Fed would taper the QE by December 2013. She believes that QE tapering however is not tightening and this is good thing. This sound like good news considering US is the largest economy and hence demand scenario should improve considerably going ahead. This probably should form a long term equity strategy but lets again go back to see world markets performance.

The Bernanke’s comments have been seen very positively by the global markets hence on the second day in row, global markets are showing gains. Japanese Nikkei has surged by 0.5% at this time. Hang Seng and Shanghai however are trading in red over the concerns on the Chinese economy. European and US markets closed with handsome gains.

The surge in the Indian equities and RBI’s intervention also helped rupee to close below 60 against the dollar. The SGX Nifty is currently trading up 0.5% indicating a gap up opening in the markets. The market should do well today barring the Infosys results today. If Infosys comes with fantastic numbers then it will further lead to a good market. A bad Infosys results may pull down IT stocks.