Infosys suffers body blow today, but retains its sheen

Infosys share price was the top loser on Sensex and Nifty IT index. The stock had hit its lifetime high of Rs 1,358 on the BSE earlier this week on Tuesday. 

Infosys suffers body blow today, but retains its sheen
Infosys is all set to report its June quarter earnings for FY19 on July 13. Image source: Reuters
By ZeeBiz WebTeam
Updated: Thu, Jul 05, 2018
04:43 pm
ZeeBiz WebDesk
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Infosys share price tanked a whopping over 5 per cent as investors booked profits in the IT major after recent strong gains. The stock tanked as much as 5.6 per cent to Rs 1268.85 on the BSE, and settled 4.5 per cent lower at Rs 1284.50 on the BSE.  However, the stock has kept its sheen as this brokerage has retained its buy rating.

Infosys was the top loser on Sensex and Nifty IT index. The stock had hit its lifetime high of Rs 1,358 on the BSE earlier this week on Tuesday. 

The Bangaluru-based IT giant is all set to report its June quarter earnings for FY19 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.