{"id":12591,"date":"2023-04-17T09:48:00","date_gmt":"2023-04-17T09:48:00","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/indias-infosys-hits-over\/"},"modified":"2023-04-17T09:50:11","modified_gmt":"2023-04-17T09:50:11","slug":"indias-infosys-tumbles-15","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/indias-infosys-tumbles-15\/","title":{"rendered":"India&#8217;s Infosys tumbles 15% on weak revenue outlook, dents sector"},"content":{"rendered":"<p>By Nishit Navin<\/p>\n<p>BENGALURU (Reuters) -Shares of Infosys Ltd slumped nearly 15% on Monday, dragging peers and the benchmark index, after the company&#8217;s dismal revenue outlook raised concerns about demand for Indian IT services amid\u00a0a global banking turmoil and recession fears.<\/p>\n<p>Infosys&#8217; outlook last week followed a disappointing quarterly report from larger rival Tata Consultancy Services Ltd, highlighting worries for the sector which earns more than 25% of its revenue from the U.S. and European banking, financial, services and insurance sectors.<\/p>\n<p>The collapse of two mid-sized U.S. lenders in March had left the financial ecosystem shaken, and drove an extraordinary government effort to reassure depositors and backstop the system.<\/p>\n<p>&#8220;Some of the macro challenges, especially around banking, financial services and insurance (BFSI) has become bigger and that does mean project cancellations or delays in the deal decision cycle,&#8221; said Apurva Prasad, vice president of institutional research, HDFC Securities.<\/p>\n<p>Prasad said he was expecting a sequential decline for companies like HCLTech Ltd, Wipro Ltd and Tech Mahindra Ltd on constant currency basis.<\/p>\n<p>Infosys, India&#8217;s second-largest IT services firm, on Thursday said it expects revenue growth of 4%-7% on a constant currency basis for the year ending March 2024, well below analysts&#8217; expectations of 10.7%, as clients cancelled projects and deferred spending on growing fears of a recession.<\/p>\n<p>The previous slowest annual growth was a 5.8% increase in fiscal 2018.<\/p>\n<p>Infosys&#8217; shares fell as much as 14.7% to 1,185.3 rupees in their biggest intraday percentage drop since October 2019. The Nifty 50 shed as much as 1.4%, and the IT index fell over 7%.<\/p>\n<p>The Bengaluru-based company&#8217;s net profit of 61.28 billion rupees ($748.21 million) in the January-March quarter also missed analysts&#8217; expectations of 66.24 billion rupees, according to Refinitiv IBES.<\/p>\n<p>Smaller rival HCLTech is due to report results later this week, while Wipro is expected next week.<\/p>\n<p>($1 = 81.9020 Indian rupees)<\/p>\n<p> (Reporting by Nishit Navin; editing by Eileen Soreng)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/indias-infosys-tumbles-15\/file-photo-an-employee-walks-past-a-signage-board-in\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ3G038-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3G038-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Nishit Navin BENGALURU (Reuters) -Shares of Infosys Ltd slumped nearly 15% on Monday, dragging peers and the benchmark index, after the company&#8217;s dismal revenue outlook raised concerns about demand for Indian IT services amid\u00a0a global banking turmoil and recession fears. Infosys&#8217; outlook last week followed a disappointing quarterly report from larger rival Tata Consultancy [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12592,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1220],"tags":[1223],"class_list":["post-12591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-technology","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ3G038-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/12591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=12591"}],"version-history":[{"count":4,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/12591\/revisions"}],"predecessor-version":[{"id":12844,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/12591\/revisions\/12844"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/12592"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=12591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=12591"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=12591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}