MUMBAI: IT major Infosys could witness sharp volatility when markets reopen on Monday in reaction to its results which missed Street expectations on most counts. However, it outperformed larger peer TCS by profit and revenue growth.
The Infosys American Depositary Receipt (ADR) ended 6% lower post-Indian markets closing on April 13. ADRs allow foreign companies to list their shares on US bourses like Nasdaq. The company’s share closed flat at `1748.55 on Wednesday after the release of its Q4 results post-market hours. Revenue growth was 22.7% against TCS’ 15.75%, while net profit grew at 12.2% as against 7.3% for its peer. Its attrition rate was 27.7% against TCS’ 17.4%
Traders in anticipation built short positions by selling active month call options across 1,740-1,800 strikes on Infosys. A call seller sells in hope that an underlying stock won’t rise, enabling her to pocket the premium paid by a call buyer. Call sellers are thus bearish. The 28 April expiry futures contract could witness long liquidation or creation of fresh shorts when the market opens Monday, said SK Joshi, director, Khambatta Securities. Immediate support is at 1,700 level while strong resistances kick in at 1,800 and 1,900 levels.
Uk ombudsman selects tcs to drive digital transformation
India’s largest IT services company Tata Consultancy Services (TCS) on Thursday said it has been chosen as a strategic partner by UK’s Financial Ombudsman Service to accelerate digital transformation. TCS will help futureproof the Ombudsman’s technology capabilities with a new digital portal that would improve the experience for complainants and respondents, the company said in a release.