Tech has not been the driver of sentiment in this amazing market rally and ’ Q2 result reiterates this. Although, the company has clocked about 9% plus sales growth for the quarter, Infosys’ earning have gone up just 2% QoQ which is very marginal. Also the rupee guidance of the company in up just 90 paise i.e. just 1%.
These numbers are not great from Infosys, they are okay, they are higher than their guidance but the guidance was extremely conservative to begin with.
Investors were hoping that the company would strike out something like a 6-7% kind of growth, but that has not happened.
, MD and CEO, , said the premium valuations that tech stocks enjoyed have shrunk significantly. He added that Infosys numbers don’t spring any kind of positive surprise. According to Shah, Rs 2,000 per share seems to be a good base for Infosys. "We could see some profit booking at these levels in Infosys. The stock is expected not to underperform in the next 5-6 months."
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