The stock fell 3.6% on Friday to the day’s low of Rs 1,498.20 on the NSE amid selling pressure in most IT stocks following a cut in the guidance by Accenture.
Infosys was also the biggest loser among Nifty stocks, dragging the markets the most. Around 2:30 am, over 1.10 crore shares were trading on the NSE with the total traded value of the share standing at Rs 1,675.16.
Infosys has been a sector laggard and has given returns of nearly 9% over a year, while the Nifty IT index delivered over 25% returns during this time. Its performance is even worse in comparison to broader Nifty’s gains of 28% in the same period.
The stock has slipped below its 50-day simple moving average while maintaining its 200-day SMA.
The Nifty IT index fell by 1,325 points or 3.6% in the intraday trade with all 10 stocks trading in the red. Accenture’s guidance impact was felt by D-Street as its results and outlook have reaffirmed the market’s expectations of cautious near-term demand.”Accenture highlighted further cuts in short-cycle discretionary projects, a negative for companies such as Wipro, LTIMindtree, Mphasis and Infosys where estimates incorporate some recovery in discretionary spending. Noting the weak near-term demand, we expect large IT services companies to start FY2025E with a cautious guidance,” said Kawaljeet Saluja of Kotak Equities.
Nomura analysts also believe that discretionary demand is unlikely to recover meaningfully in H1 of FY25 for India’s IT industry.
The IT major had reported a consolidated net profit of Rs 6,106 crore for the quarter ended December, down 7% from Rs 6,586 crore reported in the previous-year quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
