Tim Seymour:  Indian IT service vendor Infosys has been finding it hard to deliver market-pleasing results lately, and the timing could not be much worse.

Infosys Technologies Limited (NASDAQ:INFY) says U.S. customers in particular are putting technology projects on hold again in the face of stubborn domestic unemployment and the spring’s inflation scare.

As a result, the company says its earlier estimate of 23% growth in the second half of this year is now going to be extremely difficult to achieve.

This is especially awkward because the second half is traditionally a slow season for Infosys anyway, and traders were already skeptical about the company’s ability to break out of its recent trading range.

In Mumbai, traders are getting tired of watching Infosys miss its own targets. Three months ago, everyone thought this company could generate 140 rupees in profit per share.

Now, the EPS bar has been lowered to 130 rupees and the market chatter indicates that it will even take results that beat the old 140 rupee forecasts to get this stock to move:

INFY is not exactly cheap either. It is still trading at roughly 20 times earnings.

But if Infosys says in a rut for awhile, what does that do to the Mumbai market and Indian ETFs?

Remember, INFY is routinely the second-biggest component in most large-cap India ETFs like WisdomTree India Earnings ETF (NYSE:EPI), iPath MSCI India Index ETN (NYSE:INP) and iShares S&P India Nifty 50 Index ETF (NYSE:INDY) — and the biggest that U.S. traders can trade without getting an overseas account.

As INFY goes, EPI and its peers may follow.

Written By Tim Seymour From Emerging Money

Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.

About Tim Seymour: Tim is a founder of Emerging Money. He is a founder and Managing Partner at Seygem Asset Management, and The Emerging Markets Contributor to CNBC. Seygem Asset Management focuses on investing throughout the global emerging markets asset class. With a view that emerging and developing economies will continue to outpace the economic growth and advancement of developed economies, Seymour has devoted a career to investing in the dominant markets of tomorrow, today. Seymour’s career has included significant experience in both alternative asset management (hedge funds) and capital markets, having launched two hedge funds, and built the largest Russian broker dealer in the USA. Seymour started his career at UBS, focusing on international credit (cash, swaps, forex) in a specialized hedge fund group (New York). Seymour completed the firm’s training program after graduating with an MBA in international finance from Fordham University. Seymour received his undergraduate degree at Georgetown University.

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