New Delhi (India), 17th April 2023: After IT services exporter’s bleak revenue outlook showed the impact of banking crisis in major countries, the United States and Europe, Infosys Ltd. shares fell over 15% on Monday, dragging stocks of rivals.
With more than 25% of its revenue coming from just the U.S. and European banking, financial, services, and insurance sectors, Infosys’ prediction came in the wake of a dismal quarterly report from larger rival Tata Consultancy Services.
Due to the financial ecosystem being jolted by the failure of two mid-sized U.S. institutions in March, the government made an unprecedented effort to reassure depositors and support the system.
The Nifty IT index fell as much as 7.6% as Infosys had its largest intraday percentage decrease since October 2019. Infosys also pulled other IT companies lower.
Refinitiv IBES reports that the Bengaluru-based company’s net profit for the January-March quarter of 61.28 billion rupees ($748.21 million) fell short of analysts’ forecasts of 66.24 billion rupees.
