by Why Infosys shares are falling
1. Infosys shares saw a sharp drop of over 5% on Friday.
2. This decline happened in early trading on the Bombay Stock Exchange (BSE).
3. The fall followed a drop in the company’s American Depositary Receipt (ADR) on the New York Stock Exchange (NYSE).
4. The ADR closed at $21.57 after Infosys released its third-quarter results late on January 16.
5. By 10:15 am, Infosys shares were trading at Rs 1,822.10 on the BSE.
6. Earlier in the day, the shares had hit a low of Rs 1,815.85.
Why Infosys shares are falling these are the reasons.
Despite strong Q3 results, Infosys shares fell significantly. Here’s a breakdown of the likely reasons:
* Profit Taking: Infosys had a strong run-up in the stock price leading up to the earnings release. Investors may have taken profits after the positive results were announced, anticipating a potential short-term peak.
* Valuation Concerns: Even with strong Q3, some investors might have concerns about the company’s future growth prospects and valuation, leading to profit-taking.
* Market Sentiment: The broader market sentiment can also influence individual stock prices. If the overall market is experiencing a downturn, even strong companies like Infosys may see their shares decline.
It’s important to note:
* Strong Q3 Results: Infosys reported a significant jump in both profit and revenue in Q3.
* Raised Guidance: The company raised its full-year revenue growth guidance, reflecting the strong Q3 performance and increased deal wins.
This information is for general knowledge and discussion purposes only and does not constitute financial advice.
