Despite decent results, Infosys outlook negative for IT stocks

Based on the low its shares hit on Friday, Infosys was valued at just 10.3 times expected earnings for the current year Mark To Market | Manas Chakravarty and Mobis Philipose The markets got a mixed bag from Infosys Technologies Ltd, which reported better-than-expected results for the September quarter, but cut annual guidance more than what the markets had estimated. The significance of the latter certainly outweighs the former, but the negative sentiment related to the cut in outlook was offset by the company’s announcement that it wouldn’t increase its bid for Axon Group Plc. That was the reason Infosys shares fell by just 2.3%, even when the markets fell by as much as 7% on Friday. The market’s relief over Infosys’s withdrawal from the Axon acquisition is also evident from the performance of HCL Technologies Ltd’s shares,... [read full story]