Infosys trades with gains ahead of Q2 result

A weaker rupee, visa cost tailwind and wage hike absorption are likely to boost the margin of IT major Infosys for the quarter ended September 2019. Market experts also believe that the company will revise its guidance upward for FY20 following revenue visibility ahead.

Market participants should also focus on the commentary of US and European BFSI vertical, attrition levels, TCV pipeline momentum, revenue conversion of past deals and benefits on margin due to localisation efforts.

With a rally of 8 per cent, shares of Infosys have outpaced other IT majors including HCL Technologies (up 2.37 per cent), Tech Mahindra (down 0.13 per cent) since the beginning of the second quarter. Tata Consultancy Services (TCS) dipped 8.34 per cent during the same period.


On a year-to-date basis, Infosys has advanced nearly 19 per cent till October 7, while HCL Technologies and TCS gained 12 per cent and 8 per cent, respectively. On the other hand, small IT firms such as Tanla Solutions, D-Link and NIIT Technologies advanced between 20-55 per cent during the same period. Meanwhile, Infosys hit its all-time high of Rs 847 on September 6.

The shares of the company closed 4.19 per cent higher at Rs 815.70 on BSE.