Stock market today: Infosys shares are expected to witness heavy sell off pressure during Friday deals. According to stock market experts, when Infosys results for Q2FY24 were results, Indian stock market was closed but deals at global bourses were underway. Infosys ADR price at NYSE witnessed heavy sell off pressure after the announcement of Infosys results on Thursday. Infosys ADR price crashed 6.53 per cent on Thursday signaling its disappointment over the Q2 results 2023.
As expected, Infosys shares opened lower at ₹1405 and went on to hit intraday low of ₹1,400 apiece on NSE, losing to the tune of 4.50 per cent dip within few minutes of stocks market’s opening bell today.
Cue Infosys ADR price movement at NYSE
Infosys ADR price at NYSE opened lower at $16.40 per share, around 7 per cent lower from its Wednesday close of $17.61 per share levels and finally ended at $16.46 levels, near 6.53 per cent lower from its Wednesday close.
Buy or sell: Vaishali Parekh recommends three stocks to buy today — October 13
According to stock market experts, generally Indian markets follow the reaction of NYSE market, especially after the announcement of quarterly results. Infy shares had fallen heavily at NYSE after Q1FY24 results as well and Indian stock market had followed that trend on the following session. So, there can be some selling pressure on Infosys shares during stock market’s opening bell today.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Infosys share price outlook
Speaking on the reason for Infosys share price fall on Friday, Prashanth Tapse, Senior Vice President — Research at Mehta Equities said, “INFOSYS Q2 earnings disappointed the markets expectation and trimming revenue guidance would be negative for the stocks. FY24 Guidance – revised downwards would put pressure on Infosys share prices to sustain while it has maintained margins. Technically the last minute fall in prices says results were not in favour of bulls hence a gap down opening near ₹1400 apiece levels.” He said that global market sentiments are also weak after higher-than-expected US GDP data.
Expecting the bearish trend in Infy shares to continue further, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Infosys results were highly disappointing as the company lowered its guidance for FY24. This is the major reason for dent in Infosys share price.”
After announcement of Q2 results 2023, Infosys trimmed its revenue growth guidance to 1%-2.5% from 1%-3.5%. The change in revenue guidance for FY24 was the unexpected element. In constant currency terms, it now projects revenue growth in FY24 of 1% to 2.5%. It did, however, stick to the 20%–22% operating margin guidance for the year. In Q1FY24 results, Infosys notably slashed its FY24 revenue outlook from 4%-7% to 1%-3.5%.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Download The Mint News App to get Daily Market Updates.
More
Less
Updated: 13 Oct 2023, 09:51 AM IST