One of the basic principles of figuring out whether the stock prices have bottomed out or have topped out is how they react to the negative and positive news. Now let s use the same thing on Infy, two bad news in quick succession, first the resignation of the CFO and then more than a billion US dollars getting canceled. Let s look at what happened when both the news came. The resignation news came post the market hours and the Infy ADR and initial sharp cut, but then recovered. Next day the infy stock hardly lost any weight. On Tuesday, news of cancellation of a sizable contract came, the impact, just 1.2 % cut in stock price. Now compare with a time when a marginal miss in quarterly numbers lead to a cut of more than 5% in stock price and wipes out billions of dollars in market cap. So, while it might be a bit early, surely early signs cannot be ignored. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed st
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Shares of IT firms have lost ground despite the rupee slipping in the last five sessions. Usually, rupee and IT stocks share an inverse relationship. When rupee falls, IT sector stocks rise on prospects of increased earnings since most of them deal in outsourcing of business from overseas clients and earn in dollars. On the other hand, when rupee rises, IT shares fall.
However, this time, the fall in rupee has been accompanied by a decline in IT stocks.
The rupee, which closed at 79.25 to the dollar on July 8 has fallen to 79.92 today, losing 67 paise during the period amid a stronger greenback in the overseas market. An expected fall in the current account deficit and FIIs outflows have also led to weakening of sentiment around the local currency.