Infosys Q2 Results Announced, Reflects A Low At NSE and NYSE (Image: Infosys.com)
Infosys announcement of its Q2 results have reflected upon its share prices and on ADR price at NYSE. Infosys share prices have gone down by 4 percent and its American Depository Receipts (ADR) price at New York Stock Exchange (NYSE) have fallen 6.53 percent on Thursday, all after the announcement of its Q2 results for the year 2023, the mint reported.
Infosys shares could meet with pressure to sell off in the coming days. When the Infosys results for Q2 FY24 were announced, though the stock markets were closed, deals at the global stock markets were underway. After the announcement, the company’s ADR prices at NYSE met with heavy sell of pressure and crashed 6.53 percent, pointing at the disappointing Q2, 2023 results.
At NSE, it was as expected, analysts said, the shares opened at a low at Rs.1405 and went into an intraday low of Rs. 1,400 per piece. this was a 4.50 percent low in few minutes of opening bell earlier in the day.
At NYSE also, the Infosys ADR price opened at a low of $16.40 per piece which was around 7 percent down from the previous day, Wednesday’s close of $17.61 per piece; it ended at $16.46, which was near to 6.53 percent lower than Wednesday’s close.
As per market experts, the mint said, in general, the Indian market follow the NYSE market reactions specially in the case of quarterly result announcements. In the Infosys case, this pattern has been followed, the shares fell in the NYSE and reflected at the Indian markets too. The selling pressures are also expected to go the same way.
On Infosys price fall, Research at Mehta Equities Senior Vice President, Prashanth Tapse said, “INFOSYS Q2 earnings disappointed the markets expectation and trimming revenue guidance would be negative for the stocks. FY24 Guidance – revised downwards would put pressure on Infosys share prices to sustain while it has maintained margins. Technically the last minute fall in prices says results were not in favour of bulls hence a gap down opening near ₹1400 apiece levels.” He added that the market sentiments at the global level are also weak after the US GDP data which is higher than expected, said the mint.
A bearish trend is expected to continue in the case of Infosys shares, said Avinash Gorakshkar, the Head of Research at Profitmart Securities. He further said, “Infosys results were highly disappointing as the company lowered its guidance for FY24. This is the major reason for dent in Infosys share price.”
After the results of Q2, 2023, Infosys has kept its revenue growth guidance to 1percent – 2.5 percent from 1 percent – 3.5 percent. The change in revenue guidance for FY24 was unexpected for the company.
