Infosys hits 52-week low

The stock hit a 52-week low of Rs 1,009, correcting 20% from its 52-week closing high of Rs 1,268 on June 6, 2016.

Infosys has fallen to its 52-week low of Rs 1,009, down 1% on the BSE in intra-day trade, extending its 4% decline past four trading sessions, after the Royal Bank of Scotland (RBS) shelved plans to set up a separate bank in the United Kingdom (UK), for which IT major was a key technology partner. LINK

On August 13, Infosys in a media statement said the Royal Bank of Scotland announced that it will no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), and instead will pursue other options for the divestment of this business.

Infosys has been a W&G program technology partner for consulting, application delivery and testing services, and subsequent to this decision, will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months, it added.

Given the development, analysts see risks to Infosys's revenue and margin outlook not only for FY17, but for FY18 as well. They expect the management to revise their full-year FY17 guidance again going ahead, the Business Standard report suggests. LINK 

The stock has corrected 20% from its 52-week high of Rs 1,268 on June 6, 2016, closing level, as compared to 4.4% rise in the benchmark S&P BSE Sensex.

At 02:35 pm, the stock was down 0.74% at Rs 1,014, as compared to 0.20% decline in the BSE S&P Sensex. A combined 4.27 million shares changed hands on the counter on the BSE and NSE.