Infosys shares on Monday plunged more than 9%, wiping away Rs 59,349.66 crore from the company’s valuation, after it posted a weaker-than-anticipated increase in fourth-quarter net profit and provided a flimsy 4-7% revenue rise projection for FY24.
On the BSE, the stock dropped 9.40% to close at Rs 1,258.10. It fell 12.21% during the day to reach Rs 1,219, a 52-week low. It decreased 9.37 per cent to Rs 1,259 on the NSE. On the major indices Sensex and Nifty, Infosys was the greatest detractor.
The company’s market valuation also declined by Rs 59,349.66 crore to Rs 5,21,930.34 crore. As a result of Infosys and deteriorating trends in other IT counters, the 30-share BSE Sensex dropped 520.25 points, or 0.86 per cent, to conclude the day at 59,910.75.
“The real damage was done by the frontline IT stocks with Infosys coming under severe hammering after its corporate earnings failed to meet street estimates. Besides disappointing results, worries of weak IT spending by multinational giants on gloomy economic conditions and recessionary fears have weighed heavily on the sector over the past few months,” Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd, said.
Other IT companies also took a beating, with losses at Tech Mahindra, HCL Technologies, Tata Consultancy Services, and Wipro ranging from 1 to 5.25%. The IT index fell 4.77% to finish at 26,887.72.
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