Infosys' troubles far from over, experts remain cautious

Infosys fell 1.1 percent to Rs 2,448.90 after gaining 7 percent over the previous four sessions given concerns that hopes for more Fed monetary stimulus may have been overdone.

The software services exporter was also hit after Bank of America-Merrill Lynch warned of seeing no pick-up discretionary IT spending from the financial services sector, which makes up a good chunk of its revenues and demand from financial services “remains challenged” in the near-term.

BofA-ML added that organisational and leadership transition challenges for Infosys also continue, while a deferred wage hike posed employee retention risk.

The investment bank retained the stock at “neutral” with a target price of Rs 2,450.

Reuters