Thursday, 12 January 2012

Your Trade @ 9: Infosys Q3 + IIP Nov = Market rally?

Good Morning everyone! Today is an important day for the markets. KV Kamath's Infosys and Keki Mistry's HDFC will hit the headlines with their quarterly results. Earnings forecast from these two giants will prove to be a trend decider for the market. First, let's take a quick look at the global cues and newspaper headlines this morning.

US stocks held firm near recent five-month highs on Wednesday as investors awaited key bond market tests for Europe in the next two days that could determine the direction of the euro zone crisis.

The Dow Jones industrial average lost 13.02 points, or 0.10 percent, to 12,449.45. The S&P's 500 Index closed flat at 1,292.48.

Watch out for weekly jobless claims and retail sales data later in the day.

Europe closed lower as Fitch says the ECB must do more to prevent euro collapse.

Germany sold 3.153 billion euros of new five-year notes, drawing more demand than in a previous auction in December. Spain is all set to sell 3-4 billion euros in 3-year bonds while Italy will sell 8.5 billion euros worth 12-month treasury bills and 3.5 billion euros worth flexible treasury bills.

It was muted across Asia as investors await China's inflation numbers today. The SGX Nifty suggests Indian markets will dip close to 0.5% in the opening bell.

Meanwhile, Euro hits a 16-month low against the dollar on Europe concerns, currently stable in Asia trade, back above 1.27.

Back home, a CNBC-TV18 Poll sees November industrial output stabilising at 1.6 percent after seeing a 5 percent contraction last month as November core sector rises to 6.8%. All eyes will be on capital goods and consumer goods data.

In stock specific news, Country's second largest software services exporter Infosys is expected to report a profit after tax of Rs 2,322 crore in the third quarter of FY12, a growth of 21.8% as compared to Rs 1,906 crore in the previous quarter, according to CNBC-TV18 estimates.

Revenues are seen going up 13.9% to Rs 9,223 crore from Rs 8,099 crore during the same period while the company expects a growth of 9-11.3% in revenues at around Rs 8,826-9,012 crore in the quarter ended December 2011.

Thomas Cook puts Indian arm on the block reports the Economic Times. The newspaper further reports of companies from steel, cement and power sectors oppose Coal India's new pricing policy.

Reliance Communications, which has a USD 925 million convertible bond maturing in March and has failed so far in efforts to sell its tower unit, is in talks with China Development Bank for a loan to redeem the bond.

Results Today: Infosys, HDFC, TTK Prestige, DCB, Geojit BNP Paribas, Gruh Finance, Sanghi Industries.

Riken Mehta

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