Infosys Results To Drive The Markets
DSIJ Intelligence / 11 Oct 2013
Optimism is back on the street with global equity Indices trading in green on the back of U.S. lawmakers saying that talks on raising the nation’s debt limit to avoid a default will continue. All Asian indices are trading in green and Indian equities are not going to be an exception. However everything would be guided by the Infosys Q2 results announcement ahead of the market opening.
It seems that the optimism is back in the global equity markets. It is clearly seen from the fact that the Asian equity markets rose a fourth day. Further the Emerging-market currencies strengthened as U.S. lawmakers said talks on raising the nation’s debt limit to avoid a default will continue. The equity Markets globally responded well to the news and after long time all equity indices are trading in green.
On the US front the Dow gained more than 2 % while the NASDAQ also appreciated by more than 2 %. The European markets also showed optimism as the FTSE closed up by 1.44% and CAC 40 rose 2.16%. Taking the cue from this, all leading Asian equity indices are trading in green with Nikkei trading up with 1.35 % gains. While Hang Seng is up 1.41 % the Shanghai Composite is up 0.67%.
The SGX Nifty is trading in green (Up by 67 points) at 6137. This surely provides positive view to the Indian equities. However everything depends on the Infosys results which will be announced today. Infosys will kick-off the July-September quarter earnings season today. Analysts on an average expect profit after tax of the company to rise by 10.2 percent Q-o-Q to Rs 2614 crore during the September quarter. Revenues are seen going up by 13.4 percent to Rs 12,781 crore in second quarter of FY14 from Rs 11,267 crore in previous quarter while dollar revenues may grow 2.6 percent Q-o-Q to USD 2042 million. If the results are better than the estimates the stock is likely to surge significantly. However if the results are below estimates, it is likely to remain stagnant.
Usually the Infosys results are considered to set the trend for the quarterly results. However this time the story would be quite different as the IT companies are likely to put in better financial performance on account of INR depreciation and improved scenario in US and Europe. But the results of other companies are not likely to be good. So there is expected to be a stock specific movement going ahead.
As for today, expect a positive opening for the markets. IT stocks are expected to remain in limelight.
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