Infosys shares near day’s low ahead Q4 results today

The weakness in the overall IT shares can be attributed to cascading effect of Tata Consultancy Services (TCS) Q4 results, which were briefly below analysts' estimates. The company’s net profit grew by five per cent quarter-on-quarter to Rs 11,390 crore in the March quarter of FY23.

Infosys shares in the last one year has dipped nearly 20 per cent on the exchanges - Image Source: Reuters

Shares of Infosys – India’s second-largest IT services company – were under pressure along with tech heavyweights during Thursday’s trading session on the exchanges. The Bengaluru-based IT company is scheduled to announce its March quarter earnings for the financial year 2022-23 (Q4FY23).

Infosys stock is trading near its day’s low level of Rs 1385 per share, down more than Rs 43.45 or 3.04 per cent from Wednesday’s closing of Rs 1428.45 apiece on the BSE.

The weakness in the overall IT shares can be attributed to cascading effect of Tata Consultancy Services (TCS) Q4 results, which were briefly below analysts' estimates. The company’s net profit grew by five per cent quarter-on-quarter to Rs 11,390 crore in the March quarter of FY23.

TRENDING NOW

Other IT stocks that were under pressure today: Tech Mahindra down around 2 per cent, followed by HCL Tech and TCS each down over 1 per cent on the exchanges today. The Nifty IT index was down almost 2 per cent in the early morning session dragging the overall markets on Thursday.

According to Zee Business research, Infosys is also expected to report muted earnings for the last quarter of FY23, wherein the profit after tax is likely to come almost flat to Rs 6600 crore and revenue may surge by around two per cent to Rs 39,000 crore on a sequential basis.

Overall, the country's IT sector is expected to stage a muted earnings performance for the March quarter owing to global macros and seasonality, according to Zee Business research.

Zee Business research analyst Kushal Gupta during a special edition of ‘Traders’ Dairy’ had advised to 'sell' Infosys shares in futures for a target of Rs 1,390 apiece with a stop loss at Rs 1,450 per share. The stock has already breached the estimated target of Zee Business.

Infosys shares in the last one year dipped nearly 20 per cent as compared to around a two per cent rise in Nifty50. The stock has been almost flat with a per cent fall in the last six months, wherein the benchmark index has been higher by over four per cent during the same period.

Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

TAGS: