Mumbai: IT bellwether Infosys Technologies today plunged 2.65% in early trade a day after the government approved hiking the minimum alternative tax (MAT).
Shares of Infosys Technologies tanked 2.65% to a month-low of Rs2,690 on the Bombay Stock Exchange.
Significant losses in Infosys also dragged the BSE IT index down by 96.69 points, making it the biggest loser among the 13 sectoral indices.
Meanwhile, the 30-share Sensex was trading flat at 18,229.32 points.
The government yesterday approved the Draft Tax Code (DTC) which also seeks to impose MAT at 20% of the book profit, compared to 18% at present. The proposal has put the IT counters under pressure as these companies pay MAT.
Reacting to the move, other technology counters were also trading in the red. TCS fell 1.14% to touch an early low of Rs 864.10, while Wipro shed up to 1.5% to trade at Rs 394.
Besides, HCL Technologies fell by 0.93%, Tech Mahindra was down 1.14% and Patni Computer Systems slipped 0.1% on BSE.