10 Apr 07 Indian Stock Market – Interesting correlation between Infosys results and market movement
Since 2001, when the practice of coming out with a guidance started, Infosys has disappointed every alternate year on that front. And in five of the last six times, Infosys’ stock and the broader market have declined on the results’ day (or in the first trading session after results, in case the markets were closed) – no matter what the guidance.
The sole exception was 14 April 2006, when Infosys beat street estimates by guiding revenue growth of 30.7% and EPS growth of 28.4% for the last financial year. But on that Friday, the market was closed for Ambedkar Jayanti. When they opened on Monday, 17 April 2007, the Infosys stock zoomed 6.93%, and the Sensex ended with a gain of 302 points (2.69%).
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