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Infosys Q3 result to dictate market trend

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Capital Market
Last Updated : Jan 10 2014 | 11:55 PM IST

The market is likely to open lower as most Asian stocks fell. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 22 points at the opening bell. Industrial production data for November 2013 to be released after trading hours today, 10 January 2014 will be closely watched. Infosys announces its Q3 December 2013 results today, 10 January 2014. IndusInd Bank also unveils Q3 earnings today, 10 January 2014. Asian markets were trading mostly lower ahead of US jobs data due later in the global day.

Infosys announces its Q3 December 2013 results today, 10 January 2014. At the time of announcement of Q2 September 2013 results in October 2013, Infosys had raised its revenue guidance in both dollar and rupee terms. The increase in revenue growth guidance in rupee terms was driven by weakness in rupee against the dollar. At that time, the company had issued a forecast of 21% to 22% growth in revenue in rupee terms based on the assumption of rupee dollar conversion rate of 62.61 for the rest of the fiscal year. The company had at that time forecast 9% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014).

Industrial production is seen registering a muted growth of 0.9% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had declined 1.8% in October 2013, against 2% growth in September 2013. The decline in the output of manufacturing sector at 2% and mining sector at 3.5% mainly led to decline in industrial production in October 2013. The government will unveil industrial production data for November 2013 after trading hours today, 10 January 2014.

Key benchmark indices settled marginally lower on Thursday, 9 January 2014 after alternately swinging between positive and negative zone throughout the trading session. The S&P BSE Sensex lost 16.01 points or 0.08% to settle at 20,713.37, its lowest closing level since 7 January 2014.

Foreign institutional investors (FIIs) sold shares worth a net Rs 3.74 crore on Thursday, 9 January 2014, as per provisional data from the stock exchanges.

The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year.

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The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.

Asian markets were trading mostly lower ahead of US jobs data due later in the global day. Key benchmark indices in China, Japan, Indonesia and South Korea fell by 0.07% to 0.56%. Hong Kong, Singapore and Taiwan rose by 0.14% to 0.34%.

China's exports rose 4.3% in December from a year earlier, according to reported data, after surging 12.7% in November. Imports were 8.3% higher than the year-ago month, accelerating from 5.3% growth in November. The resulting trade surplus was $25.6 billion, narrowing from the previous month's $33.8 billion.

The S&P 500 index eked out a marginal gain on Thursday, 9 January 2014 while the Dow Jones Industrial Average and the Nasdaq Composite index dropped, weighed down by losses for Verizon Communications Inc. and AT&T Inc.

The number of Americans who applied to receive unemployment benefits in the first week of the new year fell to the lowest level since the end of November. In the week ended Jan. 4, initial jobless claims fell by 15,000 to a seasonally adjusted 330,000, the U.S. Department of Labor said Thursday.

The US government will unveil the influential non-farm payroll report for December 2013 today, 10 January 2014.

The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The US central bank is poised to continue winding down its stimulus measures gradually this year.

The Bank of England on Thursday, 9 January 2014, left the size of its bond-buying program unchanged and held its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($617 billion). The minutes from the January meeting will be published on 22 January 2014.

The European Central Bank also left policy unchanged at 0.25% on Thursday, 9 January 2014, with its president Mario Draghi detailing the bank's commitment to its low-rate policies. Mario Draghi said at a press conference that the central bank will be ready to act when it believes the inflation outlook is changing for the worse.

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First Published: Jan 10 2014 | 8:24 AM IST

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