5 Reasons Why Infosys Stock is Hitting New 52-week Highs Everyday

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    Ever since Infosys declared its results for the quarter ending Sept 2014, the stock is on a roll. From levels of Rs 3700 a day ahead of its results (Oct 9, 2014) the stock is now trading at Rs 4305. In fact, the last few days has seen the stock hitting a new 52-week high almost everyday. Here are five reasons why the stock is on a roll.

    Grabbing Shares Ahead of Book Closure

    Investors want to cash in on the bonus shares ahead of the company's shares going ex-bonus on Dec 2, 2014. They are hopeful that since the stock price would halve after the 1:1 bonus there could be some more rally as the stock becomes more affordable.

    Will It Beat NASSCOM Industry Growth Targets?

    Many analysts are revising their guidance and expectations from the firm. One broking firm has placed the EPS of the company at Rs 244, making the P/E of the company just under 20 times, which is much lower than peers like TCS.

    Rupee Hopes

    The rupee has depreciated from Rs 60 levels to nearly 62 levels. Analysts believe that this could improve margins at the firm as rupee depreciation is always good for software exporters like Infosys.

    Data from the US Encouraging

    The US GDP Numbers which were declared last week came in sharply higher than expected. Analysts believe that sharp recovery in the US Economy is good news for Infosys, which gets bulk of its revenues from the US markets.

    Improving Attrition Levels

    There is also a thought that Vishal Sikka, the new CEO has managed to instill a new sense of optimism among employees, especially after the exodus of a large number of top employees at the company. Attrition levels at the company may be contained for better future prospects.

    Read more about: infosys
    Story first published: Friday, November 28, 2014, 8:55 [IST]
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