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Infosys recovers early losses following market rebound

Infosys recovers early losses following market rebound
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First Published: Fri, Oct 10 2008. 03 37 PM IST
Updated: Fri, Oct 10 2008. 03 37 PM IST
PTI
Mumbai: Shares of software services major Infosys Technologies today pared most its early morning losses as markets strengthened after the Reserve Bank of India reduced CRR by another one per cent and on government assurance that more steps would be taken to infuse liquidity.
The IT major, which opened on a weak note on the Bombay Stock Exchange, lost further ground and dipped to an intra-day low of Rs1,040, down over 17% from its previous closing price.
Similar trend was witnessed on the National Stock Exchange, where the stock opened at Rs1,200, then plummeted to an intra-day low of Rs1,040, down 17.08% over its last close.
“Infosys’ earnings were comparatively good. But because of weak global cues investors resorted to book profits and hence, there was a sharp decline in the shares. However, as the market got its boost from the government some recovery was witnessed in the stock,” Taurus Asset Management Managing Director R K Gupta said.
Finance Minister P Chidambaram today said that the main problem is liquidity and government would do everything to tackle it and announced to set up a high-powered committee, headed by Finance Secretary, to assess the requirement.
Meanwhile, the Reserve Bank of India cut the cash reserve ratio by one per cent to ease liquidity pressures.
On the volume front, as much as 20.07 lakh shares exchanged hands on the NSE, while on the BSE 3.85 lakh shares got traded.
Brokers said historically shares of a company always witness a downtrend whenever its earnings are announce as the market generally discounts the decent earnings growth for the company.
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First Published: Fri, Oct 10 2008. 03 37 PM IST