Infosys shares plummet on revenues forecast
A revenues forecast from Infosys resulted in its stocks falling.
The share price of Infosys plummeted yesterday (April 11th) on the back of the news its revenue forecasts fell below the expectations of the market.
Stocks in India's second-largest software firm lost a fifth of their value and fell by more than 18 per cent to 2,385 rupees on the Bombay Stock Exchange.
"The forecast looks quite conservative, which is a concern," said KK Mital, chief executive for portfolio management services at Globe Capital.
He pointed out that mid-cap companies are expected to perform better than this and suggested there could be tricky times ahead for the company.
Infosys forecasts revenue growth of between six per cent and ten per cent. However, most analysts had expected the company to predict a rise of nearly 12 per cent.
A net profit of 23.9 billion rupees (£285 million) was revealed by the firm for the first quarter of the year.
In the US, Andre Bakhos, director of market analytics at Lek Securities in New York, recently told Reuters investors are waiting for the Dow Jones to reach a top.
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