Markets at a glance

Markets clocked its ninth consecutive weekly gain, boosted by earnings optimism and continued fund inflows. However, selling pressure was visible at higher levels. Overall, BSE Sensex rose 241 points or 1.4 per cent to 17,933, while Nifty gained 71 points or 1.3 per cent to 5,362 during the last week. Midcaps and smallcaps outperformed; the BSE Midcap index rose 3.2 per cent and BSE Smallcap index gained 4.1 per cent. Recovery in global stock markets buoyed by US employment data also supported domestic bourses. On the macro front, India's food price index rose 17.7 per cent for week ended March 27, higher than the annual rise of 16.35 per cent a week earlier.

Markets this week

The market is entering an important period of quarterly earnings, with IT bellwether Infosys kick-starting the results season on April 13. Analysts are quite up-beat on the earnings season and expect good results across most sectors. The foreign fund inflows, which were robust given that the month of April so far has seen inflows of around Rs 3,400 crore, can be major drivers for further up move. Suggesting that there could be little more steam left in the up move experts say that hedging one’s portfolio by buying options could be considered. Besides, major corporate results, global developments like resolution to Greece’ problems could give direction to the markets, going ahead.

 

Stock to watch

INFOSYS TECHNOLOGIES
Last week’s close (Rs) 2,677.53 Prev. week’s close (Rs) 2,670.93 Week’s high (Rs) 2,697.80 Week’s low (Rs) 2,588.90 Last week’s ave. daily turnover (Rs cr) 266.69 Prev. week’s ave. daily turnover (Rs cr) 425.94 Number of up/down move 3/2

The stock of IT bellwether Infosys could see action with the company expected to announce its fourth quarter results on Tuesday. Analysts expect Infosys to report muted revenue and earnings growth for March quarter considering currency impact, planned employee addition and wage hikes.

The IT major’s revenues are expected to rise by 2.5-3.5 per cent sequentially, operating margins to hover around 35 per cent levels while net profits could inch up about 1-2 per cent.

Besides the quarterly results, the management’s commentary regarding the business environment and their guidance for the next quarter and 2010-11 also assumes importance. At Rs 2,678.85, the stock trades at 26 times its 12-month EPS of Rs 104.