IT Selloff: Heavy selling caused loss, in this case Infosys lagged behind SBI

By Sudhakar Yadav July 22, 2023 7:51 PM IST

New records are being created continuously in the domestic stock market for the last few days. However, due to the arrival of new high levels one after the other, investors booked profits in the market on Friday. Heavy selling was seen especially in IT stocks. One of the reasons for the fall in IT stocks is the lower than expected performance in the first quarter. Due to this, the structure of the major indices of the market was affected.

Infosys ka mcap remained so much

The country’s second largest IT company Infosys was also among the biggest losers in Friday’s trade. Infosys’ stock registered a tremendous fall of more than 8 percent and after that the price of one share came down to Rs 1,337.45. Due to this heavy selling, the market capitalization of Infosys also came down to about Rs 5,49,000 crore.

SBI’s value increased

On the other hand, the country’s largest public sector bank SBI’s stock registered a rise on Friday. State Bank of India’s share got stronger by more than 1 percent and crossed Rs 615. Along with this, the mcap of State Bank of India also increased and reached close to Rs 5,49,850 crore.

SBI, the 7th largest company

The volatility in the prices of both the stocks affected the composition of the Sensex companies. After Friday’s trading, State Bank of India became the 7th most valuable company in the stock market in terms of market capitalisation. At the same time, Infosys has now come at the eighth position after lagging behind. Earlier, SBI had succeeded in leaving Infosys behind in the month of May as well, but later Infosys made a recovery.

The first quarter was like this

The fear of global economic recession is affecting IT companies the most. If we look at the four largest IT companies, this has happened after a long time, when their total number of employees has decreased in a quarter. Barring one TCS, the employees of the other three largest IT companies Infosys, Wipro and HCL Tech have decreased during the June quarter.

The brokerage firm is also apprehensive

This is the reason that the scenario ahead for the second largest IT company Infosys is also not looking good. Brokerage houses are also anticipating a fall in prices in the coming days. Nomura India has cut Infosys rating to Reduce and target price to Rs 1,210 from Rs 1,450.

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