IT Bellwethers Sound Alarm in Stock Market with Sharp Cuts
Infosys Match Centre. Image credit X.com @Infosys
Infosys Shares Tank After Q3 Result After HCT Tech Rout
By S Jha
New Delhi, January 17: Shares of Infosys tanked by over five per cent while reacting to the third quarter result. The sharp cut in the shares of Infosys came after the ADR of the stock went into a tailspin in the US stock market.
Infosys had reported an under two per cent revenue growth with flat margin. The company is expecting better prospects in the next quarter.
Yet, the IT bellwether went down in trade on Friday with a sharp cut of over five per cent which is rarely seen for a blue chip company in the stock market.
The sharp correction in the shares of Infosys has come in close heels of peer HCL technology also going under the hammer. The shares of HCL technology corrected by over 10 per cent after announcing the third quarterly results.
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The IT giants in the stock market were trading lower after the two frontline companies failed to cheer the investors. The shares of TCS, Wipro, LT Info, and others were trading lower in the early trades on Friday.
In contrast, the midcap IT stock LT technology continued to gain for the second day in a row after announcing better quarterly results. The midcap IT stock shares were trading higher even while the broader market was under pressure.
The indices were trading lower, tracking global cues. The US stock markets had closed lower in the Thursday trades.
Shares of LT Mindtree, Mastek, Newgen Software and some more IT stocks were trading lower in the early trades on Friday. Conventionally, investors look upon at Infosys to lead the sector with its quarterly results.
But the Bengaluru-based IT behemoth has been a laggard in the stock market for past several years. In six months, shares of Infosys gave returns of little over three per cent. The shares of Infosys gave returns of about 10 per cent in the last one year.
The brokerages have claimed that the IT companies may expect improvement in the banking and financial services businesses from the next quarter. The segment is key to the revenue growth of IT companies such as Infosys and TCS.
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