Infosys shares faced a sell-off heat at the stock market's opening, with the share price dropping around 10 per cent within minutes.
The sell-off was triggered by Infosys' decision to cut its revenue growth guidance for Q1FY24 to 1 per cent to 3.5 per cent, down from 4 per cent to 7 per cent.
The impact of the revenue guidance cut was felt on the New York Stock Exchange (NYSE) as Infosys ADR shares tanked by 13.50 per cent.
Anuj Gupta, Vice President of Research at IIFL Securities, attributed the bearish sentiment to the revenue guidance revision.
Experts advised shareholders to be cautious and consider an 'exit on rise' strategy, selling shares on any uptick and potentially re-entering in the ₹1,250 to ₹1,280 range.
Despite the downturn, Infosys reported an 11 per cent rise in net profit for Q1FY24, reaching ₹5,945 crore.
The IT services industry is facing a challenging demand environment, which contributed to Infosys' revised revenue guidance.
Investors should carefully assess Infosys' future growth plans and financial performance before considering it as a long-term investment.
Stay updated on Infosys' performance by monitoring financial news, official announcements, and expert analyses.