Infosys share price fell more than 1 per cent to Rs 1,360.05 apiece on BSE, a new 52-week low in Thursday’s intra-day trade, tracking the fall in US IT stocks overnight. On the back of growth concerns, the stock has fallen more than 3 per cent in the last five days, 13 per cent in one month, and 27 per cent in the last six months. The IT bellwether has tanked 28 per cent so far this year, and 20 per cent in one year. In comparison, the S&P BSE Sensex was down less than one per cent in the last month. Analysts say that despite being a very low debt, and consistently well performing sector, IT stocks including Infosys recently have seen a sharp dip due to a worsening US & European economy including sharp sell offs in tech giants across the globe.
In the traded volume terms, a total of 1.3 lakh shares exchanged on BSE, while 55.87 scrips traded on the National Stock Exchange (NSE), so far in the day. AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com that long-term investors can buy Infosys stocks if it closes above Rs 1,382 this week for a target of Rs 1,465 in the coming weeks. “However, a daily close below Rs 1,370 could lead to a fall till Rs 1,345 in the near term,” AR Ramachandran added.
The Indian IT stocks witnessed weakness on Thursday tracking slump in US IT stocks overnight. US markets tumbled mainly dragged by IT stocks after the US Federal Reserve hiked interest rate by another 75 bps with hawkish commentary. “However, fundamentally and technically, Infosys holds strong with encouraging growth and robust parameters from a long term perspective,” Ravi Singh, VP & Head of Research, Share India Securities. He also added investors may hold their long positions and wait for the target of 1450 levels in coming months.
Nifty IT index was ruling 0.3 per cent up, at 26,922 levels, on the back of gains in stocks of Coforege, Mindtree, LTTS, L&T Infosys, Tata Consultancy Services (TCS), and Mphasis, up in the range of 0.2-2 per cent. On the flip side, HCL Technology, Infosys, Tech Mahindra and Wipro were the top draggers.
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