Why Infosys shares nosedived 10% after Q1 results 2023 — explained

Infosys shares were expected to open lower after the company cut its revenue growth guidance for Q1FY24

Asit Manohar
Updated21 Jul 2023, 09:31 AM IST
Infosys shares may go down below  <span class='webrupee'>₹</span>1,300 levels and experts have advised 'exit on rise' and re-enter around  <span class='webrupee'>₹</span>1250 to  <span class='webrupee'>₹</span>1280 range.
Infosys shares may go down below ₹1,300 levels and experts have advised ’exit on rise’ and re-enter around ₹1250 to ₹1280 range.(REUTERS)

Infosys shares  have been under the sell off heat since stock market's opening. Infosys share price today opened lower and went on to hit intraday low of 1,305 apiece levels, logging around 10 per cent dip within few minutes of stock market's opening bell today.

Stock market experts were expecting a gap down opening for Infosys shares as India's IT major cut down its revenue growth guidance to 1 per cent to 3.50 per cent in Q1FY24 results. After the disappointing guidance call by the IT company after Q1 results 2023, Infosys share price on New York Stock Exchange (NYSE) tanked to the tune of 8.41 per cent and closed at $16.22 per share. So, taking cue from the US stock market, stock market investors are selling Infosys shares after declaration of Infosys results for Q1FY24.

Speaking on Infosys share price outlook, Anuj Gupta, Vice President — Research at IIFL Securities said, “Major reason for being bearish on Infosys shares is company's decision to slash FY24 revenue guidance to 1-3.5 per cent from 4-7 per cent. This hasn't gone down well among the stock market investors across globe. On NYSE, Infosys ADR shares nosedived after the weak guidance call and hit intraday low of $15.33 apiece, losing to the tune of 13.50 per cent against its Wednesday close of $17.71 apiece on NYSE.”

The IIFL Securities expert advised Infosys shareholders to exit on rise as the stock may go down below 1,300 per share levels in near term.

On advise to Infosys shareholders, Sumeet Bagadia, Executive Director at Choice Broking said, “Infosys shares have breached its immediate support placed at 1,350 apiece levels. Infosys shares may see more weakness in near term.”

Advising 'exit on rise' to Infosys shareholders, Anuj Gupta of IIFL Securities said, “Infosys shares are looking weak and it may go below 1,300 levels. So, my advice to Infosys shareholders is to exit on any rise and re-enter at in 1250 to 1280 range.”

Infosys Q1 results

Infosys, the second largest IT services company in India announced its financial results for the first quarter of FY24 on Thursday, reporting a rise of 11 per cent in net profit to 5,945 crore, compared to 5,360 crore in the year-ago period. The IT Major sharply trimmed its FY24 revenue guidance to 1-3.5 per cent from 4-7 per cent amid an increasingly challenging demand environment.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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First Published:21 Jul 2023, 09:31 AM IST
HomeMarketsStock MarketsWhy Infosys shares nosedived 10% after Q1 results 2023 — explained

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