Infosys gains three percent as earnings beat street estimates
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Infosys gains three percent as earnings beat street estimates

Last Updated: Tuesday, January 12, 2010, 10:40
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Tags: InfosysSharesBSE
Infosys gains three percent as earnings beat street estimates Mumbai:Shares of Infosys Technologies today rose by 3.4 per cent on the Bombay Stock Exchange in early trade after the IT giant reported lower-than-expected 3.6 percent decline in third quarter earnings.

Infosys surged 3.4 per cent to a high of Rs 2,573 on the BSE. The scrip rose 3.7 per cent to touch a high of Rs 2,580 on NSE.

Infosys, the country's second largest software company, today reported a 3.6 per cent dip in consolidated net profit at Rs 1,582 crore and a 0.8 per cent fall in its income from software services and others at Rs 5,741 crore for the quarter ended December 31, 2009.

"Although the figures have declined on an year-on-year basis, on a sequential basis it rose nearly three per cent.The market was expecting a far more subdued earnings growth, and this helped the stock to move up," SMC Global Vice President Rajesh Jain said.

Marketmen said there has been a good amount of short- covering in the stock as it has been hammered quite a lot in the past trading sessions.

Jain said while long term investors can continue to hold the counter, others should book some profit on the counter and wait for correction to re-enter.

The Infosys counter has gained about 13 per cent in the December quarter. The company has Goldman Sachs, BT Group and BP, among its clients.

PTI

First Published: Tuesday, January 12, 2010, 10:40

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