Infosys shares tank 9%; market cap plunges Rs 23,459 crore post Q1 result

Mumbai: Infosys shares today plunged nearly 9 percent, wiping out Rs 23,459 crore from its market valuation, after the company's June quarter result failed to enthuse investors following a cut in annual sales forecast.

The stock plummeted by 8.81 percent to settle at Rs 1,072.25 on BSE. During the day, it tumbled 9.99 percent to Rs 1,058.30.

On NSE, it tanked 8.81 percent to end at Rs 1,072.55.

Led by the steep fall in the stock, the company's market valuation declined by Rs 23,459.11 crore to Rs 2,46,289.89 crore.

During the day, the stock was the worst performer among the bluechips on both Sensex and Nifty.

On the volume front, 27.11 lakh shares of the company were traded on BSE and over 3 crore shares changed hands at NSE during the day.

"Infosys posted numbers lower-than-expected," said Sarabjit Kour Nangra, VP Research- IT, Angel Broking.

"Q1 FY17 has been disappointing but this has come after couple of good quarter," brokerage firm Prabhudas Lilladher said in a report.

India's second-largest IT company Infosys today reported a 13 percent jump in its June quarter net profit on new client addition, but cut its annual sales forecast.

Consolidated net profit of Rs 3,436 crore in the April-June quarter was 13.4 percent higher than Rs 3,028 crore in the same period a year ago.

Infosys forecast a 10.8-12.3 percent sales growth in the US dollar terms for 2016-17, down from the previous forecast of 11.8-13.8 percent as companies worldwide rein in IT spending and shift to cloud-based software services.

The full-year revenue guidance to 10.5-12 percent in constant currency terms is lower than April forecast of 11.5- 13.5 percent.

Industry body Nasscom also had recently lowered its growth forecast for software exports to 10-12 percent in the year to March 31, 2017, down from 12-14 percent in 2015-16.

Infosys' consolidated revenue for April-June was up nearly 17 percent year-on-year at Rs 16,782 crore.

Meanwhile, selling was also seen in other IT stocks, where Hexaware Tech tumbled 3.72 percent, TCS (3.11 percent), Wipro (2.81 percent), Tech Mahindra (2.72 per ent) and HCL Tech (1.44 percent) on BSE.

Consequently, the BSE IT index fell 5.35 percent to end at 10,608.40.