Q3: Street to track IT demand cues

Subdued demand, and no substantial recovery in discretionary technology spending amid client caution should keep big positive surprises at bay as IT companies kick off the third-quarter earnings season

- Harshalethmalani [e-mail]

January, creating the spectre of added uncertainty ina market that has struggled to trade above its recent record high.

The benchmark Nifty has rallied 21% from a 52-week low of 21,743.65 on 7 April last year through a record high of 26,373.2 last Monday due to massive buying from domestic institutional investors led by mutual funds. However, the Nifty could not sustain gains as FPIs continued to sell, falling 2.6% to 25,683.3 on Friday. The market is likely to trade over a 1.5% range from 25,500-25,900 through Tuesday, options data indicated.