Today,all the three main US indices were down nearly 2% each. Stock benchmarks also fell in key markets in Europe and Latin America. But, Asian markets haven't fallen as much as their western counterparts. Crude oil is only marginally higher at around $115 per barrel. So, there is still hope for the bulls that things might improve as the day wears on. Expect a lot of stock centric action with Infosys likely to hog the limelight in the wake of its big-bang acquisition.
Infosys announced the country's biggest ever acquisition in the IT space. The Bangalore-based software major has acquired UK-based SAP consulting firm Axon for $753mn or Rs33bn. At almost 20% premium to Friday's closing price of Axon and two times sales, the all-cash deal is not cheap. Its operating margin, at 15% is nearly half of Infosys. But, in the long run, it is expected to boost the company's business in the UK and Europe.There’s a lot more to the market than Infosys. A deal of this size may save the stock for some time but not the sentiment on the sector. Overall, we may witness more weakness today, at least in opening trades on the back of the overnight fall in US shares.
