The software giant Infosys faced its largest ever fall over the BSE Sensex today just a day before it announced it quarter ending results. The stock has reportedly lost 3% 24 hours prior to the time when it shall announce its results for the second quarter of 2011.
The intraday trends saw a lowest of Rs. 2493.1 at almost 4% fall of the software giant. This fall has also broken its rally hattrick that had been prevailing during the past 3 days. This has lead to a loss in Rs. 4710 crores in a single day fall. The market capitalization, as per theSensex, now stands at Rs. 144079 crores as per the last recorded data.
According to analysts, such huge fall in the stock has primarily been due to profit booking made by the company. Also it is being rumored that the earning forecast earlier stated by the company might be curtailed because of the prevailing global market scenario.
The rupee recovery has also contributed majorly towards decline in stock prices and exporters face the difficulty when the dollar weakens. The rupee has seen major recovery at Rs. 49.32 a dollar from an almost Rs. 50 a dollar rate prevailing just a few days back.
‘Bell the Bull says’ earnings announcement of the company has mixed sentiments because on one hand people expect the earnings to be higher due to the weak rupee in the past times while on the other hand the global economic scenario doesn’t raise any spirits for the software leader.