Infosys, the country's second largest IT company, emerged as a top loser in the Nifty IT pack as the stock crashed more than 2.50 per cent. The bearish sentiment in the counter came even as the IT major announced that it would consider a share buyback programme on Thursday, October 13 -- the day it will release the second quarter results.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The scrip had made an intraday high of Rs 1,479.65, advancing 1 per cent. However, it erased the gains to trade in negative territory as bears dragged the markets tracking weak global cues. At 3:30 pm, Infosys share price settled at Rs 1,425, cracking over 2.50 per cent. 

Five out of 10 Nifty IT stocks including Infosys -- Larsen & Toubro Infotech, Tech Mahindra, Mphasis Limited and Wipro crashed more than 2 per cent each. TCS, which declared Q2 results yesterday, too participated in the downfall as it tumbled 1.75 per cent to end at Rs 3,064 apiece. 

TCS on Monday reported better than expected results with a nearly 5 per cent sequential rise in the consolidated revenue at Rs 55,309 crore. The company also saw its net profit cross the Rs 10,000 crore mark for the first time in the quarter. The PAT grew 10 per cent sequentially, beating expectations.

Earlier on Monday evening, Infosys, India's second largest IT services provider, informed exchanges that it will consider a buyback proposal when its board will meet on 13 October. Buy Infosys target Rs 1520, Stop Loss - Rs 1430. 

"Pursuant to Regulation 29(1)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations"), the Board of the Company will consider a proposal for buyback of fully paid-up equity shares of the Company at its meeting to be held on October 13, 2022, in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended," Infosys said in a filing.

The Bengaluru headquartered company is slated to declare its financial results for the September quarter (Q2FY23) on October 13. According to reports, the company's board is also likely to consider its first interim dividend for FY23. The company had in the last fiscal given an interim dividend of Rs 15 and a final dividend of Rs 16.

Infosys has yielded a negative return of around 5 per cent in the past month while it has slumped more than 22 per cent in 2022 so far. The stock is available at a discount of almost 25 per cent from its 52-week high of Rs 1953.70 on January 17 this year.

The board will finalise the company's second quarter results on October 13. Under a share buyback or repurchase, a company buys back its own shares from investors or shareholders. It is seen as an alternative, tax-efficient way to return money to shareholders.

Infosys has yielded a negative return of around 30 per cent in 2022 so far and is available at a discount of 25 per cent from its 52-week high of Rs 1953.90.