Market recovers along with Asian peers

Key benchmark indices moved higher in early trade tracking a recovery in Asian stocks triggered by data showing strong-than-expected Chinese Q2 GDP growth. The BSE Sensex was up 122.05 points or 0.66% to 18,533.67. The market breadth was strong. Index heavyweight Reliance Industries (RIL) was firm. IT bellwether Infosys slipped marginally, extending Tuesday's near 5% slide triggered disappointing Q1 June 2011 results.

At 09:29 IST, the BSE Sensex was up 122.05 points or 0.66% to 18,533.67. The Sensex gained 145.72 points at the day's high of 18,557.34 in early trade. The index rose 53.78 points at the day's
low of 18,465.40 in early trade.


The S&P CNX Nifty was up 39.50 points or 0.71% to 5,565.65. The Nifty hit an intraday high of 5,573.20 in early trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 873 shares advanced and 276 shares declined. A total of 32 shares remained unchanged.

Among the 30-member Sensex pack, 28 stocks gained while only two of them declined. DLF (up 2.02%), Reliance Communications (up 1.6%), and Mahindra & Mahindra (up 1.49%), edged higher from the Sensex pack.

IT bellwether Infosys slipped 0.16%, extending Tuesday's near 5% slide triggering by disappointing Q1 June 2011 results. Consolidated net profit as per International Financial Reporting Standards fell 5.3% to Rs 1722 crore on 3.2% growth in revenue to Rs 7485 crore in Q1 June 2011 over Q4 March 2011. The result was declared before market hours on Tuesday, 12 July 2011.

Infosys has revised upwards its dollar earnings guidance for the year ending March 2012 (FY 2012) even as it has left its dollar revenue guidance unchanged. The company now expects 10% to 11.5% growth in earnings per American Depositary Share (EPADS) at $2.88 to $2.92 in FY 2012 over the year ending March 2011 (FY 2011). As stated earlier, the company expects 18% to 20% growth in revenue at $7.13 billion to $7.25 billion in FY 2012 over FY 2011

Infosys has forecast an up to 1.49% growth in non-annualized EPADS at $0.67 to $0.68 for Q2 September 2011 from $0.67 in Q1 June 2011. The company has forecast 3.5% to 5.02% growth in revenue at between $1.73 billion to $1.755 billion in Q2 September 2011 over Q1 June 2011.