Yesterday it was a bad day for most of tye IT stocks and one of them was Infosys. It has dropped by over 12% at the time of opening bell but at the end of the day it was doen for around 9.5%. It was mainly because Infosys has posted lower than expected revenue in the fourth quarter. This leads to panic sell by investors thinking that, it might go down further.
PC: Google.com
The Infosys share has down by over 20% from the last 1 year and it is actually not a good sign for most of the IT stocks. We are seeing Wipro going down by over 50% and now the Infosys seems to be down further. Though market has recovered at the end of the closing tike, because of banking stocks but all the IT stocks were down at one point of time by huge margin.
Now people are thinking what to do with IT stocks. If you are planning to buy, I would say to wait for some time and see how the IT market behaves in couple of months before investing. Though Infosys and TCS shares are gold, we can continue buying it in every dip. Yes it can go lower, but as a value investor, it is good to buy good shares at low price. But even though I will wait to see how this week goes by.
If you are having some shares of Infosys, then you can sit tight and wait to see how the week goes by but I would say do have the limit price so that it does not go beyond that and you can buy later. For me it looks temporary as of now and will not go down much from there. Though it is not a financial advice, you should invest or not based on your risk appetite.
