Infosys recovery from 52-week low isn't enough to stall coronavirus bear run
- Infosys share price fell by over 25% since last week.
- The IT stock has recovered after hitting a 52-week low of ₹56.80 when markets opened today morning.
- However, the marginal uptake is not nearly enough to make up of the larger nose dive of the stock price.
Indian IT giant Infosys recovered all of its early morning loss when the markets opened after a
45 minute trading halt.
Ensuing the 52-week low of ₹568.8 in the first few minutes of the trade, the stock started to climb back up during afternoon trade crossing the previous day’s close, a little before noon. In fact, the Sensex too recovered by 1,100 points as trading resumed.
]]>
However, the marginal recovery is nowhere near what’s needed to make up for the nose-dive Infosys’ stock has taken since last week. After hitting ₹752 on March 5, Infosys’ share price has consistently been falling — plummeting by over 25%.
]]>
Infosys isn’t alone. Indian markets followed a global crash to open
10% down today morning and hit the lower circuit. This suspended trade activity for the next 45 minutes. In what is being called the build-up to a ‘
coronacrash’, Asian markets — including Indonesia, South Korea, Thailand, and the Philippines — were also forced to halt trading today morning.
Meanwhile, Infosys competitor Tata Consultancy Services (TCS) stock dipped below ₹1,600 for the first time since July 2013 marking a
seven-year low for the IT giant.Markets are heading towards a massive coronacrash
IT stocks as whole have been trading in the red since February 28, when investors lost
₹5 lakh crore to the market in massive selloffs right before the weekend.
Yesterday, March 12, Nifty plunged by 2,000 points wiping out another
₹8 lakh crore of investor wealth. It was the sharpest single-day fall since the 2008 financial crisis.
The New York Stock Exchange (NYSE) is considering closing off the trading floor in the coming week to keep the coronavirus pandemic from spreading.
The IT sector, which was already bearing the burden of the global economic slowdown, is in for a rough ride going forward. The prolonged pandemic will impact new client acquisitions, and as a result, Kotak Securities has corrected the revenue expectation from IT companies by 2-4%.
“We expected moderate improvement in spends among US banking clients at the beginning of the year. However, the subsequent turn of events has all but eliminated this possibility,” said the report.
Infosys is only one of 783 stocks on the NSE to have hit its 52-week low this week, along with TCS.
See also:
TCS loses over ₹2 lakh crore in three months as stock markets head for a 'coronacrash'
Coronavirus travel restrictions affect everything from the IPL to NRIs on vacation
Coronavirus recovery rate at 54% as doctors race to find a cure