Sensex flat, Infosys gains 2% after Q3 profit beats St estimates

The Indian markets opened flat today despite a The Sensex is up 60.58 points at 20773.95, and the Nifty gains 10.50 points at 6178.85.

Shares of Infosys jumped 2 percent intraday on Friday after it announced December quarter earnings. Investors are euphoric on the stock as the IT exporter raised its full year (FY14) dollar revenue guidance to 11.5-12 percent from 9-10 percent earlier, which was largely in-line with analysts’ expectations of 11-12 percent.

[caption id=“attachment_1268411” align=“alignright” width=“380”]  Reuters[/caption]

During the period, its consolidated revenue increased 0.47 percent sequentially (up 25 percent Y-o-Y), in-line, to Rs 13,026 crore and dollar revenue climbed 1.6 percent Q-o-Q to USD 2,100 million in the quarter gone by.

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“The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and clients are gaining confidence to invest in their strategic initiatives,” S D Shibulal, CEO and managing director said.

Meanwhile, notwithstanding the stock market in 2014 logging one of the worst New Year starts since 1996, the year heralds the beginning of a bull cycle in India and the Sensex may scale the 24,000 peak by December, Deutsche Equities said today.

The Sensex has shed over 450 points in 2014 so far, making it the second worst New Year show in nearly two decades, but the leading foreign brokerage is hopeful of Indian equities touching new peaks in coming months.

“Year 2014 will herald the beginning of a bull market in the country and we are setting the Sensex target at 24,000 and an imputed Nifty target of 7,148, implying an upside of 16 per cent from the current levels,” it said.

The rupee opened marginally higher at 61.99 per dollar versus 62.07 Thursday. The US dollar eases from a seven-week high in early trade as investors book profits ahead of the keenly awaited US jobs report, helping lift the euro that was briefly unsettled by dovish comments from the European Central Bank.

Pramit Brahmbhatt of Alpari India said that, “Rupee will be rangebound before the market gets some fresh triggers from the IIP & inflation data. However, there will be sustained pressure owing to a weak equities and a strong dollar in international markets.” “But banks selling dollar at current levels will help rupee gain some strength. Range for the day is seen between 61.70-62.40/ dollar,” he added.

Globally, US markets closed flat yesterday ahead of the crucial nonfarm payrolls data due today. Status quo on the monetary policy by the ECB and BOE lead the European markets lower.

Meanwhile, Asian market headed lower in opening trade ahead of China’s trade data Nymex prices rose above USD 92/bbl in early Asian trading after touching an eight-month low in the previous session, pulled down by a drop in demand for heating oil and speculation over withdrawal of stimulus money.