Infosys shares hit a all-time high yesterday on expectations of robust second quarter earnings, to be announced pre-market today. Analyst expectations are pegged at around 9 pct jump in sales growth and EBIDTA growth of 33 pct QoQ.
Wall Street closed flat after a slide during the noon session. After hours tech giant Google's shares soared 10 pct on excellent quarterly results. Banks got the stick though.
Asia trades in the red
Bank stocks lead Japan lower Friday morning while other Asian markets too are trading in the red.
Infosys might disappoint
While the street is looking forward to guidance, we believe FY12 growth is already priced in the stock. Currency jitters might make the outlook less exciting and attention will be on growing attrition. Yesterday's numbers from Axis Bank were stunning but the stock has run up a lot ahead of the numbers.
Results Today
Following companies will declare Q2 numbers today.
DCB, Karnataka Bank, Manappuram, Venus Remedies, Infosys Technologies
Expect another rocky session today
All indicators are pointing to a gap down open, marginally though. We expect a volatile session and might end the day flat. Infosys might decide the short term direction but we re-iterate that gone are those days when Indian markets used to completely rely on one company (be it Infy or Reliance) before judging the economic growth. Markets are getting matured and for good.