Share Market Review

The market surged in late trading building on the recovery from lower level which it had witnessed in mid-afternoon trade. The market had slipped into the red in afternoon trade from an early surge after the industrial production data for November 2007 fell short of market expectations. The data hit the market in early afternoon trade today. Reliance Industries (RIL) surged. IT stocks were mixed after Infosys posted better than expected Q3 December 2007 results before trading hours. Banking, Oil & gas and realty stocks gained. Capital goods and consumer durables stocks declined. The market breadth was weak. BSE Mid-Cap and Small-Cap indices underperformed Sensex. European markets which opened after Indian markets were mixed. Asian markets which opened before Indian market were weak today.


Infosys has raised both earnings and revenue guidance for the year ending March 2008 (FY 2008). The company has forecast 18.6% growth in EPS in FY 2008 as per Indian GAAP at Rs 79.30. It has forecast a between 19.7% to 19.9% growth in revenue in FY 2008 as per Indian GAAP to between Rs 16627 crore to Rs 16657 crore.


As per US GAAP, the company has forecast 33.8% growth in consolidated earning per American depository share in FY 2008 at $1.98. The company has forecast a between 35%to 35.2% growth in revenue as per US GAAP in FY 2008 to between $4.17 billion to $4.18 billion.