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Stay cautious on Infosys, BofA-Merrill warns

INFOSYS-SHARES:Stay cautious on Infosys, BofA-Merrill warns

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Reuters
Last Updated : Jan 25 2013 | 4:04 AM IST

 

Reuters Market Eye - Infosys falls 1.1 percent to 2,448.90 rupees after gaining 7 percent over the previous four sessions given concerns that hopes for more Fed monetary stimulus may have been overdone.

The software services exporter also hit after Bank of America-Merrill Lynch warns discretionary IT spending, which makes up a good chunk of its revenues, has seen no pick-up, while demand from financial services "remains challenged" in the near-term.

BofA-ML adds organisational and leadership transition challenges continue, while a deferred wage hike poses risks of employee retention, in a note written after meetings with Infosys executives including its CFO and dated on Thursday.

The investment bank retains the stock at "neutral" with a target price of 2,450 rupees.

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First Published: Aug 24 2012 | 11:40 AM IST

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