Dull Infosys guidance: What's in store for the stock

Nachiket Kelkar
Moneycontrol.com

Infosys has had a tradition of giving a conservative guidance and then outperforming itself. However, the market no longer seems to be enthused. Tuesday, the stock tanked 5% even as the technology bellwether reported first quarter earnings, which were only slightly below analysts expectations. It also raised full year EPS (earnings per share) guidance slightly.

Though some analysts say the market overreacted, most agree that upside in the stock is limited due to the lackluster forecast given by the company.

"There is no bad news as such. But there is nothing encouraging either," said ICICI Securities