Disappointing results and a weak revenue forecast for the current fiscal from IT bellwether Infosys saw the BSE benchmark index Sensex decline by 300 points to close at 18243 on Friday.
The Nifty too closed at 5529, down 65 points.
Infosys lost Rs 644 on the NSE and closed at Rs 2,273 a share with a traded volume of over 1.22 crore shares and a delivery percentage of 40. On the BSE, it lost Rs 622 to close at Rs 2,295 a share with a traded volume of over 19.3 lakh shares and a delivery percentage of 28.
Despite the company announcing a conservative revenue guidance of between six and 14 per cent for FY14 (below industry body Nasscom’s 12-14 per cent growth estimate), market-men are optimistic about its prospects.
“Infosys has taken various correct measures in FY13 such as flexibility in pricing to compete and win deals in commoditised IT and software services space, acquisition of Lodestone to expand presence in Europe and investment in the long-term strategy (assigned $100 million for a changing technology environment),” said Daljeet S.Kohli, Head –Research, IndiaNivesh Securities.
IT sector indices on both NSE and the BSE pared 11 per cent.
Hit by growth concerns other IT companies too suffered losses. TCS fell by 1.63 per cent and Wipro by 4.72 per cent on BSE.
The decline was in contrast to fall in retail inflation in March and factory output growth of 0.6 per cent in February.