Infosys pointer to Indian shares
MUMBAI, India (Reuters) -- An earnings forecast from software bellwether Infosys Technologies will be the key factor driving Indian shares this week as investors shift focus to the earnings season amid growing signs of a quick end to Iraq war.
"Infosys' guidance will be crucial as it is seen by investors as a guide for the sector," said Vipul P. Dalal, chief operating officer of institutional equity business at brokerage Investmart India Ltd.
Nasdaq-listed Infosys, India's No 2 software services exporter, will issue guidance on Thursday for the financial year that started on April 1, along with its quarterly results.
A survey of 45 investors in Asia, U.S and Europe by brokerage CLSA Emerging Markets showed 61 percent believed the company would indicate revenue growth of over 20 percent in the current year.
Dalal said investment inflows will be the other factor influencing sentiment this week. "We expect inflows to improve once the (Iraq) war is behind us as investors start looking at fundamentals."
A pick up in overseas investment would also be tied to Infosys' guidance, as technology is one of the most sought after sectors by overseas funds.
Institutional investors have largely stayed away from equities due to uncertainties of the ongoing war, although offshore funds have bought Indian shares for a net $393.2 million in 2003.
The benchmark BSE30 share index rose 1.7 percent last week to close at a two-week high as traders picked up beaten down shares on hopes the U.S.-led forces would soon be successful in overcoming Iraqi resistance.
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