Infosys tumbles 3% ahead of Q2 results tomorrow

MUMBAI: Software major Infosys was the biggest drag on the BSE 30-share Sensex on Tuesday as it shed over 3 per cent ahead of the release of its second quarter results tomorrow.

Breaking 3-day gaining streak, the stock lost 3.17 per cent at Rs 2,509.20 on the BSE. Intra-day, it had tumbled over 3.78 per cent to Rs 2,493.10 a piece.

The company lost Rs 4,710 crore in market capitalisation, which has fallen to Rs 1,44,079 crore.

Market analysts said the dip was largely due to profit booking. Besides, there was market speculations that the company might cut its earnings forecast amid uncertainties in the global economy.

Moreover, some recovery in the rupee also contributed to the decline as a stronger currency makes exporters less competitive. The currency strengthened for three days before falling to 49.32, still up against the US dollar from about Rs 50 a few days ago.

The IT bellwether is going to announce its second quarter earnings tomorrow. Though rupee depreciation in the recent months is expected to have boosted its July-September earnings, there are concerns about its guidance owing to the uncertainty in the global economy.

Infosys is the heaviest weighed scrip on capital market benchmark Sensex after Reliance Industries. The over 3 per cent fall in the counter acted as a drag on Sensex, which closed 20.76 points lower at 16,536.47.