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Markets to be range bound this week: Analysts

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Press Trust of India New Delhi

The stock markets are likely to be range bound this week and may see investors booking profits as IT major Infosys Technologies' fourth quarter results and earning guidance failed to meet Dalal Streets' expectations.

The Bombay Stock Exchange key index Sensex fell by 64.63 points, or 0.33%, in the week gone by, to settle at 19,386.82 in the previous trading session.

According to analysts, stock market will see profit booking by the jittery investors as Infosys delivered a below-expectation fourth quarter numbers and revenue guidance.

"Market is likely to be range bound this week. Monday will see impact of Infosys numbers which were lower than expected. Bulls will take a backseat during this week and investors will bear a cautious approach," Ashika Stock Broking Research Head Paras Bothra said.

 

Infosys had on Friday reported a 13.62% jump in net profit at Rs 1,818 crore for the fourth quarter ended March 31, 2011. It reported a revenue of Rs 7,250 crore for the quarter.

The company expects revenue in the range of Rs 7,311-7,382 crore for the quarter ending June 30, 2011, and in the range of Rs 31,727-32,270 crore for FY12.
    
Market experts also said that the overall market has turned a little volatile after the late March rally, which was sparked by robust FII inflows.
    
"The overseas inflows have slowed lately even as concerns prevail over earnings prospects amid high inflation. Globally too, a few problems persist. As a result, one should tread cautiously in the near term and wait for further clarity," IIFL Head of Research (India Private Clients) Amar Ambani said.
    
"Monday would see some selling pressure in the Infosys stock which will in-turn dampen the overall market sentiment. The quarterly numbers of domestic companies will dominate the global events this week," Geojit BNP Paribas Financial Services Research Head Alex Mathews said.
    
HDFC Bank and IndusInd Bank results on Monday are likely to influence the market sentiments, a market player added.

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First Published: Apr 17 2011 | 1:56 PM IST

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