Infosys market cap declines by Rs 59,349 crore as poor Q4 results bite
Infosys’ market valuation at the end of the day stood at Rs 5,21,930.34 crore.
CHENNAI: Infosys shares tanked by over 9% on Monday and Rs 59,349.66 crore was wiped out from its market valuation after Q4 results confirmed a lower-than-expected growth in the fourth quarter. The IT major had also given a less-than-encouraging 4-7 per cent revenue growth guidance for FY24.
The Infy stock fell a steep 9.4 per cent to settle at Rs 1,258.10 on the BSE. It had plunged 12.21 per cent to Rs 1,219 — a 52-week low — during the day before recovering some of the lost ground.
It fell 9.37 per cent to end at Rs 1,259 on the NSE.
The fall came on a day when both the benchmark indices Sensex and Nifty ended in the red.
Infosys’ valuation at the end of the day stood at Rs 5,21,930.34 crore.
“The real damage was done by the frontline IT stocks with Infosys coming under severe hammering after its corporate earnings failed to meet street estimates. Besides disappointing results, worries of weak IT spending by multinational giants on gloomy economic conditions and recessionary fears have weighed heavily on the sector over the past few months,” Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd, was reported by PTI as saying.
Stocks of Tech Mahindra, HCL Technologies, Tata Consultancy Services and Wipro also took a beating.
“The worse-than-expected Q4 results from Infosys with only 4-7 per cent revenue growth for FY24 will drag down IT stocks impacting the Nifty,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, was quoted as saying.
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