Infosys share price plunges 10%, Nifty IT index cracks over 4%

IT stocks went into a tailspin in early deals on Friday with their sectoral index falling over 4 per cent and stocks such as Infosys plunging almost 10 per cent. The fresh jolt to sentiment came from poor June quarter earnings of IT major Infosys which lowered its guidance for FY24.

Infosys' share price opened 9 per cent lower at Rs.1,320.20 against the previous close of Rs.1,449.50 and soon extended its loss to 10 per cent to touch the Rs.1,305 mark. Infosys stock traded 8.12 per cent lower at Rs.1,331.85 around 9:30 am.

Shares of HCL Tech, Wipro and TCS fell over 2 per cent each in trade.

Infosys on Thursday reported its weakest June quarter revenue growth since FY21 and slashed its annual sales forecast for the current fiscal year.

It said in constant currency terms, which does not account for currency fluctuations, revenue rose one per cent from the preceding quarter and 4.2 per cent from the year earlier to touch Rs. 37,933 crore. Net profit rose 10.9 per cent from a year earlier to Rs. 5,945 crore, while operating margin came in at 20.8 per cent, in line with its guidance of 20-22 per cent for the fiscal.

Moreover, Infosys also revised its FY24 revenue growth guidance to 1-3.5 per cent, down from 4-7 per cent given at its FY23 earnings conference on 13 April.