Infosys leads fall in Indian indices, 2nd most expensive market after US
2 min readA pointy fall in Infosys after the Q1 outcomes led the markets down sharply by greater than 600 factors on Friday.
BSE Sensex is down 675 factors at 66,895 factors.
Infosys shares slumped 7.7 per cent whereas HCL Tech, Wipro had been down greater than 2 per cent every. HUL additionally was down greater than 1 per cent together with Reliance, TCS.
V. Ok. Vijayakumar, Chief Investment Strategist at Geojit Financial Services mentioned although Nifty is at a kissing distance of the psychological 20,000 mark, Infosys can transform the slip between the cup and the lip. Infosys’ poor steerage of 1 to three.5 per cent income progress steerage for FY 24 will drag the inventory down and, maybe, Nifty with it since Infosys has a 5.9 per cent weightage in the index.
The lacklustre efficiency of HUL with a meagre 3 per cent quantity progress in Q1 might be one other drag on the market. However, the relentless FPI flows, that are overwhelming the whole lot else now, have the potential to take the Nifty to twenty,000 stage quickly. Nifty Bank can present help to the rally, he mentioned.
Investors ought to hold in thoughts the truth that on the present Nifty PE of above 20 primarily based on FY 24 estimated earnings, there isn’t any valuation consolation in the market.
Barring the US, India is the most expensive market in the world now, Vijayakumar added. At excessive valuations, some unfavorable triggers can result in sharp correction. But in the near-term the social gathering could proceed.
(With inputs from IANS)