Infosys shares on the BSE continued to fall, as the stock touched a 33-month low.
The Bangalore-based information technology (IT) services company’s stock hit a low of Rs 2,164, down 13 per cent since July 1. The stock recovered marginally and closed at Rs 2,172.6 per share, down 2.48 per cent from the previous close.
“The guidance that the company has given to the street is lower than some of the mid-cap IT firms’. I think the stock will be range-bound for some time. It will depend a lot on the management. Some positive comment, either on the acquisition side or the way they use the cash, perhaps will make some change,” said Ankita Somani, analyst (IT & telecom), at Angel Broking.
Infosys shares have corrected by almost 10 per cent since July 12 after the company announced its first quarter numbers and cut its FY13 dollar revenue guidance growth to five per cent from the earlier eight-10 per cent.
Shares of other frontline IT services companies like Tata Consultancy Services (TCS) and Wipro, too, fell on Monday, dragging the BSE IT index by 2.34 per cent.
TCS’ stock was down 3.16 per cent at Rs 1,210 per share and Wipro’s share at Rs 355.5 per share, down one per cent.
“TCS was trading at its fair valuations since quite sometime. The stock has been trading at a premium to the Sensex. So, it was bound to fall,” said Somani.
Meanwhile, Barclay’s Capital has added Hindalco Industries to its top-10 stock pick in India, in place of Infosys.
Analysts also said despite good numbers by TCS, the uncertainty surrounding the sector continued.
Goldman Sachs on Monday trimmed its global technology spending forecast to three per cent from the earlier four for calendar year 2012 in its June annual survey of the industry.
