Today, we see another cautious opening and no respite in volatility. The bias remains negative. No positive surprises were expected from Infosys and it was expected to miss its reported dollar guidance. The company has also trimmed its full-year dollar guidance marginally. The IT sector is facing multiple headwinds, including questions on corporate governance, in the wake of the Satyam controversy. The outlook on the industry remains weak.
The broader market scenario too remains glum in the face of renewed weakness across global markets. The aftershocks from the Satyam quake continue to haunt the market. The surprising improvement in IIP data could not prevent the key indices from slipping further. It may at best provide a temporary relief, as the economy will take time to pick up momentum again. Corporate earnings will continue to be in focus. Politics may become a key factor next month onwards till the end of Lok Sabha polls.
