Shock and awe from Infy; ends 21 per cent lower

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Shock and awe from Infy; ends 21 per cent lower
The stock of Infosys hit its lowest since December 2012, in intra day trade, dropping below the Rs 2300 mark for the first time since December 2012.

A poor set of guidance, disappointing dollar revenues and falling margins saw huge selling pressure in the stock. The stock ended the day lower at Rs 2296 down by 21.26% on NSE.

Analysts and brokerages have downgraded the stock to sell and in all probability a further fall is likely.

"Global economic uncertainties remain challenging for the IT industry," said S. D. Shibulal, CEO and Managing Director. "We are progressing well on our strategic direction of building a high-quality company which is relevant to our clients. We are making all the investments necessary to differentiate ourselves in the market place while positioning ourselves as a partner of choice for our clients."

"The global currency market continues to be volatile reflecting the uncertain economic environment. Our hedging strategy helps us to minimize the volatility impact," said Rajiv Bansal, Chief Financial Officer. "We have a healthy balance sheet with our cash and cash equivalents at US$ 4.4 billion."

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