Infosys recaptures Rs 2900 levels ahead of Q4 results

NEW DELHI: The country’s second largest IT exporter, Infosys rose nearly 4 per cent on Thursday, a day ahead of its results for the quarter ended January-March.

Infosys finally ended 3.7 per cent higher at Rs 2917.85. It has hit a low of Rs 2835.05 and a low of Rs 2933.30 in trade today.

The stock recaptured the psychological support level of Rs 2900 in the trade today. However, earlier in the month of April, the stock slipped below this key level on account of profit booking.

The stock has gained over 25 per cent so far in the year 2013, as compared to 4.5 per cent fall in the S&P BSE Sensex and 19 per cent rise in the S&P BSE IT Index as on April 11, 2013.

The IT major is expected to report a 3 per cent sequential drop in its net profit for the quarter ended March 30 to Rs 2296.60 crore from Rs 2369 crore reported in the previous quarter, according to ET Now Poll estimates.

The fourth quarter profits, the software exporter's is expected to take a hit on account of onsite wage increases in January and lower pricing.

However, the Dalal Street will be keenly watching whether the company gives guidance for FY14 after discontinuing with quarterly guidance.

A yearly guidance of 10 per cent and above may provide some upside to the stock in the near term. It may also boost the sentiment of Indian markets which have undergone a sharp correction recently, say analysts.

The economic recovery in the US and rupee depreciation are some of the factors that may spring positive surprise for the stock and the sector.