By Malvika Gurung
Investing.com -- Shares of the Indian IT behemoth Infosys (NS: INFY ) have fallen to a fresh 52-week low of Rs 1,360 apiece on Thursday and were last seen trading 0.2% lower at Rs 1,374.7 apiece.
Analysts peg more pain ahead for the Indian IT companies amid a likely slowdown in revenue growth of the US dollar, thanks to the existing macroeconomic stress.
The Bengaluru-based IT scrip has declined 14% in the past month and tanked almost 27% so far in 2022.
The US Fed hiked its benchmark interest rate by 75 basis points for the third consecutive time on Sept 21 and gave a hawkish outlook for future monetary tightening to curb the soaring inflation.
As a result, the Indian equities traded in the red with headline indices Nifty50 tanking 0.82% and Sensex losing 462.9 points or 0.78% at the time of writing. Sectoral index Nifty IT trading 0.1% lower, with Coforge (NS: COFO ) surging the most and Wipro (NS: WIPR ) falling the most.
IT stocks traded mixed following weak global cues and downcast domestic sentiments.
Global brokerage Goldman Sachs (NYSE: GS ) downgraded its rating on Infosys from ‘Buy’ to ‘Sell’ last week, stating that it remained more optimistic on the EBIT margin estimations of Indian IT companies than their revenue prospects.
“Given the upcoming macro slowdown (not recession) our macro team expects, which is percolating down multiple leading demand indicators, we believe Indian IT sector USD revenue growth will start to materially slow down from here,” stated the brokerage.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.