Buying into Infosys? Tech icon pulls off surprise ahead of big day
The stock of the IT major gained nearly 2 per cent to its all-time high of Rs 1358 on the BSE. The stock settled at Rs 1353.65, up 1 per cent.
TCS may be the biggest tech company in India, but the eyes of the analysts, the public and investors are always glued to the Narayan Murthy, Nandan Nilekani linked company. And it has just made a big move. Infosys share price hit its fresh lifetime high of Rs 1358 on Tuesday as rupee depreciated against the dollar for the second straight session. A weaker rupee bodes well for Indian IT companies like Infosys, as they earn a huge share of their revenues from exports and they virtually laugh all the way to the bank.
Infosys stock gained nearly 2 per cent to its all-time high of Rs 1358 on the BSE. The stock settled at Rs 1353.65, up 1 per cent. It has rallied around 30 per cent on a year-to-date basis. The scrip quoted at Rs 1,034.6 on January 1 this year. Falling rupee has lifted IT stocks in the recent past.
Meanwhile, Infosys is all set to to announce its financial results for the June quarter on July 13.
"The meeting of the board will be held on July 12 and 13 to consider the audited consolidated financial results of the company and its subsidiaries for the quarter ending June 30, 2018, Infosys said in a BSE filing.
"The financial results will be presented to the board of directors on July 13, 2018 for their approval," it added.
Brokerage Edelweiss Securities estimate Infosys to post 3.2 per cent growth QoQ in constant currency, impacted 90 bps by cross currency (cc) headwinds, implying 2.3 per cent growth in USD.
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"All eyes will be on growth in digital services, BFSI & retail commentary, deal wins and large deal renewals during the quarter. Margin is likely to decline 70 bps QoQ on account of wage hikes (120bps), higher visa costs (50bps) and higher investment in sales & digital, which will be partially offset by rupee depreciation and operational efficiencies," the brokerage said in its results preview report.
Edelweiss expects management to maintain FY19 revenue growth and margin guidance. We maintain our positive stance on Infosys anchored by strong fundamentals and attractive price. The brokerage maintained 'buy' on Infosys stock.