Shares of Infosys Ltd. continue to remain volatile after the company gave lower guidance for FY24 following the lower-than-expected fourth-quarter results. The IT firm continued to drag its peers, HCL Technologies Ltd., Coforge Ltd., and LTIMindtree Ltd., as well.
The Bengaluru-based IT services firm pegged its revenue growth at 4-7% in the ongoing financial year. That compares with an average analyst estimate of 10.6% and FY23's 15.4%, which was below the 16–16.5% guided earlier. That caused the shares to decline the most in a single day since 2019 on Monday.
Shares of Infosys Ltd. fell 1.53% to Rs 1,240.1 apiece as of 10:10 a.m., compared to a 0.21% decline in the benchmark NSE Nifty 50. The stock fell as much as 1.69% intraday, the most since Monday.
The total traded volume stood at 8.2 times its 30-day average. The relative strength index was at 24, implying that the stock may be oversold.
Out of the 48 analysts tracking the company, 30 maintain a 'buy' rating, nine recommend a 'hold,' and nine suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 20.3%.
Shares of information technology companies were trading lower on Wednesday, as the NSE Nifty IT fell 0.97% compared to a 0.21% decline in the NSE Nifty 50.
Nine out of the 10 constituents compiled by the gauge declined, while Persistent Systems Ltd. advanced.
Infosys, Coforge, HCL Technologies, LTIMindtree, Mphasis Ltd., Wipro Ltd., Tech Mahindra Ltd., L&T Technology Services Ltd., and Tata Consultancy Services Ltd. declined by nearly 1%.
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