Infosys has corrected nearly 3% to Rs 3,082 after UBS downgraded the stock to 'sell' citing the longer-than-expected turnaround time at the IT outsourcer.
The global investment bank lowered its target price on Infosys by 32% to Rs 2,750, saying excessive focus on profit margins in sales-driven business could hurt Infosys' market share, the Bloomberg report suggests.
UBS adds it expects the next wave of growth for the sector to be led by infrastructure services and business process outsourcing, which account for less of Infosys' revenue than competitors such as Tata Consultancy Services Ltd and HCL Technologies.
The stock opened at Rs 3,165 and touched a low of Rs 3,077 on the NSE. A combined 624,668 shares changed hands on the counter till early noon deals on the NSE and BSE.
The global investment bank lowered its target price on Infosys by 32% to Rs 2,750, saying excessive focus on profit margins in sales-driven business could hurt Infosys' market share, the Bloomberg report suggests.
UBS adds it expects the next wave of growth for the sector to be led by infrastructure services and business process outsourcing, which account for less of Infosys' revenue than competitors such as Tata Consultancy Services Ltd and HCL Technologies.
The stock opened at Rs 3,165 and touched a low of Rs 3,077 on the NSE. A combined 624,668 shares changed hands on the counter till early noon deals on the NSE and BSE.
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