Market may open higher on Infosys's better than expected Q1 result

The key benchmark indices may open in green as India's second largest IT firm by sales Infosys announced better than expected Q1 June 2009 result. However weak revenue guidance may weigh on investor sentiment. Weak Asia may also dampen sentiment. The investors will keenly watch industrial output data for the month of May 2009 due today. The index of industrial production (IIP) rose 1.4% in April 2009 from a revised 0.75% decline in March 2009.

India's second largest IT firm by sales Infosys announced its Q1 June 2009 result today, 10 July 2009. Infosy's net profit rose 16% to Rs 1464 crore on 15.53% rise in total income to Rs 5,369 crore in Q1 June 2009 over Q1 June 2008. On a consolidated basis, its net profit rose 15.48% to Rs 1,527 crore on 15.48% rise in total income to Rs 5,741 crore in Q1 June 2009 over Q1 June 2008

Infosys added gross 3,538 staff in Q1 June 2009 while net staff 945 in the first quarter. It added 27 new clients in Q1 June 2009.

Infosys said cash and cash equivalents stood at $2.27 billion till Q1 June 2009. Infosys CFO said global currency market remain volatile. Infosys CEO said believes short term global economic environment continues to be challenging. Infosys said FY 2010 consolidated earning to drop 11.1-12.4%. It said Q2 September 2009 consolidated EPS to drop 8.9-10.7%. It added Q2 September 2009 consolidated revenue to drop 7.1-8.7%.

Most Asian stocks fell today on worries of a prolonged economic slowdown. The key benchmark indices in China, Hong Kong, Japan, South Korea and Singapore fell by between 0.05% to 0.94%.

The Wall Street ended a choppy Thursday trade largely flat. Stocks made modest gains following disappointing retail sales data, and a mixed weekly jobless claims report. The Dow Jones was up 4.76 points, or 0.1%, to 8,183.17. The S&P 500 index rose 3.12 points, or 0.4%, to 882.68, while the Nasdaq Composite Index gained 5.38 points, or 0.3%, to 1,752.55.

On the economic front, the latest initial jobless claims fell more than expected to 565,000. It was the first time since January 2009 that initial claims came in below 600,000. However, June retail sales report disappointed as consumers eased spending amid higher gasoline prices and rising unemployment.

Back home, the key benchmark indices closed flat after moving between positive and negative terrain throughout the day in what was a volatile trading session. The BSE 30-share Sensex was down 11.69 points or 0.08% to 13,757.46 on Thursday, 9 July 2009.

As per the provisional figures on NSE, the foreign funds sold shares
worth Rs 545.55 crore and the domestic funds bought shares worth Rs 578.16 crore on Thursday, 9 July 2009.