Infosys sheds nearly 3% after govt move to hike MAT

IT bellwether Infosys Technologies today plunged 2.65 per cent in early trade a day after the government approved hiking the minimum alternative tax (MAT).

Shares of Infosys Technologies tanked 2.65 per cent to a month-low of Rs 2,690 on the Bombay Stock Exchange.

Significant losses in Infosys also dragged the BSE IT index down by 96.69 points, making it the biggest loser among the 13 sectoral indices.

Meanwhile, the 30-share Sensex was trading flat at 18,229.32 points.

The government yesterday approved the Draft Tax Code (DTC) which also seeks to impose MAT at 20 per cent of the book profit, compared to 18 per cent at present. The proposal has put the IT counters under pressure as these companies pay MAT.

Reacting to the move, other technology counters were also trading in the red. TCS fell 1.14 per cent to touch an early low of Rs 864.10, while Wipro shed up to 1.5 per cent to trade at Rs 394.

Besides, HCL Technologies fell by 0.93 per cent, Tech Mahindra was down 1.14 per cent and Patni Computer Systems slipped 0.1 per cent on BSE.