INFY Share Price: Why are Infosys and TCS shares falling today? What bad news came from America, which shook the Indian IT sector? What is the real reason for the crash of global IT giant Accenture? Is this big fall in Infosys shares a buying opportunity or a big threat?
Infosys Share Today: If you have shares of big IT companies like Infosys, TCS or Wipro in your portfolio, then today can be a bit stressful for you too. As soon as the stock market opened on Friday, there was an uproar in IT stocks. Nifty IT Index has fallen by about 6.5%. The biggest hit has been the giant IT company Infosys, whose shares have fallen by more than 7.5% in the initial market itself. But what happened suddenly that these shares which were giving profits till yesterday, came in the red today? Should you get scared and sell your shares or is this a great buying opportunity? Let us know what market experts are saying…
What bad news came from America?
Behind this whole stir is an American company, Accenture. It is one of the largest IT and consulting companies in the world. Meaning, Accenture is a big company in the IT sector, whose health decides the mood of the entire industry. Last night, Accenture released its quarterly results and also made an announcement that scared investors all over the world.
What did Accenture announce that sent IT stocks crashing?
- Accenture said that this year its revenue growth will be less than before. Earlier the company was expecting 3% to 5% growth, which has now been reduced to 3% to 4%.
- The company said that it has suffered a loss of about $400 million due to the Middle East (Middle East countries’ disputes), and this impact may be visible in the future also.
- As soon as this bad outlook came, Accenture’s shares fell more than 17% on the New York Stock Exchange.
What is the connection of the Accenture report with Indian IT companies?
When American and European companies reduce their budgets or talk about low growth, it directly impacts Indian companies like Infosys, TCS and Tech Mahindra. The reason is clear, most of the earnings of Indian IT companies come from these foreign clients. This is the reason why in America itself, ADR (American Depository Receipts) of Infosys and Wipro had fallen by 10% yesterday, the effect of which is visible in our domestic market today.
Which IT stock lost how much in the stock market today?
Infosys Share- 7.5%
TCS Share- 6.0%
Tech Mahindra Share- 6.0%
Mphasis Share 6.0%
HCL Tech Share- 5.0%
Wipro Share- 4.0%
Note- These falls are at the time of market opening in the morning.
AI also the reason for decline in IT stocks
Even though the news is bad for the short term, there is something in this report which is a big indication for the future. Accenture CEO Julie Sweet said that even though clients are spending less on traditional work right now, demand for AI (Artificial Intelligence), cloud computing and data services is very strong. Accenture has announced that it is going to spend $9 billion (about Rs 75,000 crore) this year to buy companies and increase its AI strength. Earlier this budget was only $5 billion. This means that companies that adapt themselves to AI have a bright future. Indian companies like Infosys and TCS are also not lagging behind in this race.
Infosys decline an opportunity or a threat for investors?
Who is at risk?
According to market experts, if you are a short-term trader or have taken a position in Futures and Options (F&O), then it is time to proceed with caution. Until the market becomes stable, there may be huge fluctuations in IT stocks.
Who is the opportunity for?
If you are a long-term investor, who invests money for 2 to 5 years, then this fall can be a great opportunity for you. When companies with strong fundamentals like Infosys and TCS are available at such huge discounts, it is considered an opportunity to ‘buy on dips’. Experts are saying that do not make the mistake of investing all the money at once. If you believe in the IT sector, then you can add a small number of shares to your portfolio every fall through SIP (Systematic Investment Plan).
Disclaimer: The information given in this article is for informational purposes only and should not be taken as investment advice. Investing in the stock market is subject to risks. Before investing money in any stock, definitely consult your financial advisor or market expert.