Infosys Technologies Dropping On Profit Warning (INFY)

Infosys Technologies Limited (ADR) INFY is dropping sharply on a profit warning today, and Wipro Limited WIT could see some fallout on this trade, and traders can short it based on the negative response to Infosys today. “The sovereign debt risk could spill over to the U.S.” as the nation considers raising its borrowing limit, Chief Financial Officer V. Balakrishnan said today. “So markets are going to be concerned about sovereign risk not just in Europe, even in the U.S.” leading to volatility in currencies, he said. Net income rose to $395 million, which was below expectations. Guidance for the fourth quarter was also cut, which shocked analysts. Infosys, said it expects earnings of 31.06 rupees to 31.28 rupees for the next quarter, below the 33.5 rupees-a-share analysts anticipate. Inc. forecast in a Jan. 6 statement. “The sovereign debt risk could spill over to the U.S.” as the nation considers raising its borrowing limit, Chief Financial Officer V. Balakrishnan said today. “So markets are going to be concerned about sovereign risk not just in Europe, even in the U.S.” leading to volatility in currencies, he said.