Infosys shares hit 17-week low on margin warning1 min read . Updated: 18 Nov 2015, 07:10 PM IST
Intra-day, Infosys shares fell as much as 4.6% to touch a low of Rs1,012.25 apiecea level last seen on 20 July
Mumbai: Shares of Infosys Ltd touched a 17-week low on Wednesday as investors continued to digest its warning on 16 November that the October-March period is likely to be soft.
In morning trade, Infosys fell as much as 4.6%, seeing its steepest fall since 12 October and touching a low of ₹ 1,012.25 a share—a level last seen on 20 July. The stock closed lower in 11 out of 14 sessions, and is down 11.4% since 28 October. It has gained 3.5% this year.
Infosys closed at ₹ 1,019.85 on the BSE—a level last seen on 20 July, down 3.9% from its previous close.
The company said the third quarter is traditionally weaker for information technology (IT) firms as the business is hit by low volume growth amid Christmas and New Year holidays, and furloughs in the US and Europe.
Other IT stocks also slipped, with Tata Consultancy Services Ltd (TCS) falling 1.6%, Wipro Ltd 0.6% and HCL Technologies Ltd 1%.
The BSE IT Index fell touched a low of 10,494.22 points, falling 2.66%, a level last seen on 15 July. The index closed lower in eight out of 10 trading sessions. Since 3 November, the IT index is down 7.5% and down 0.7% in the year so far.
The index closed at 10,534.25 points, down 2.29%.
Among mid-sized IT companies, Firstsource Solutions Ltd gained 31%, MphasiS gained 25%, KPIT Technologies jumped 31.7% and Mastek added 7.3% in the last one month.
A new bill introduced in the US Senate in the second week of November has also added to the concerns of IT investors. The bill, which seeks to restrict the movement of Indian technology professionals to that country, is worrying the outsourcing industry, which has been lobbying for favourable immigration regulation in one of its largest markets, Mint reported on Wednesday.
If the bill is passed, it could seriously hamper growth and inflate the cost of operations of India’s outsourcing services industry that earns more than half of its $100 billion software export revenue from the US, the Mint report added.