Infosys Q1 result to dictate trend

Q1 June 2007 results would dictate the trend on the bourses this month. Ahead of the earnings reporting season, the barometer index BSE Sensex hit a record high above 15,000 on Friday, 6 July 2007. Also, stock specific activity may rule the roost on the bourses this month due to results.

All eyes are on the result of index heavyweight Infosys Technologies. Infosys unveils its Q1 June 2007 results on Wednesday, 11 July 2007. IT shares surged on Friday, 6 July 2007, on bargain hunting, believing that disappointing Q1 June 2007 results had already been factored in their share prices.

Market men expect Infosys to revise downwards its rupee EPS guidance for FY 2008 to factor in the impact of the rupee’s rise. But they expect Infosys to raise revenue guidance in dollar terms. This will help it maintain the EPS guidance in dollar terms.

Infosys had guided a 20% to 22% growth in EPS in FY 2008 and a higher 25.7% to 27.7% growth in EPS in dollar terms at the time of announcing FY 2007 results.

Two-wheeler maker Bajaj Auto unveils Q1 June 2007 results on Thursday, 12 July 2007.

Domestic bourses will continue to take cue from overseas markets. Over the past two years or so Indian bourses have been closely tracking trend in global equities. Asian stocks hit record highs in the first week of July 2007.

Investors will also be keeping an eye on central bank meetings in Japan and South Korea as well as rising oil prices, with London Brent crude now within sight of last year's record high. Early in the week, regional markets may react to any surprises from the influential US employment data for June 2007.