Insignificant loss recorded, by Infosys in the first quarter, which was, just above 1 percent from the previous quarter, had a tremendous impact on its stocks at both the BSE and the Nifty. The shares traded below their benchmark price closed on Monday. The trading of share did not gather momentum especially after the announcement of the results, and the stock started surging downwards, on Wednesday.

The company announced the first quarter financial results that recorded an annual growth pegged at 32.93 percent at Rs 2,289 Cr. Yet the results were 1.16 percent below the last quarter. India’s second largest IT Company has also cut its sales forecast for the preceding quarters to 5 percent. This was much lower than 8-10 per cent it had predicted at the end of the March quarter. This in general disappointed investors and send a wrong message that clients might reduce outsourcing. Moreover, if this trend continues then the IT sector could not be a sound source to invest.

Shares of Infosys, valued at about $25.5 billion, fell 10.2 per cent to Rs 2,219 after the results, dragging the Nifty down 1.3 per cent and the Nifty IT index to 5.5 per cent. At the BSE stocks fell to Rs 2,289 pulling down the BSE index by 200 points.

Experts comment that the best of IT boom is over and the results reflect the sad end to the story. However the CEO and managing director of Infosys, S D Shibulal, says, “Our focus on Infosys 3.0 and building tomorrow’s enterprise coupled with disciplined execution will help us deliver high-quality growth, despite challenges seen in the global economic situation resulting in slower IT spends by large corporations.”  The whole scenario is at the moment very uncertain say Wishesh financial analysts. Nevertheless, these results of IT majors are a reflection of global crisis and the dollar surges. Optimists hope that things are still under control. (With inputs from internet- AW AarKay)