Investors, beware! The recent quarterly report of Infosys, one of India’s top IT-based service companies, has sent shockwaves across the global stock market. The company’s revenue and profits were lower than expected, which has exacerbated fears of a recession in the US and a global economic slowdown. As a result, the American Depository Receipts (ADR) of Infy fell 8-10%, triggering a domino effect on the Indian stock market.
For those unfamiliar with the term, an ADR is a certificate representing foreign stocks trading in the US stock exchange, issued and negotiated by a US bank. When Infy’s ADR plummeted, Indian stock brokerage houses quickly curtailed their forecast target for Infy stocks, causing many brokers and high net worth individuals to sell their Infy holdings in pre-market. This led to around a 12% fall in Infy stocks in the Indian stock market.
This news also had a knock-on effect on other IT stocks such as TCS, Wipro, and Tech Mahindra. Even TCS, the largest IT service company in India, saw a downfall of around 3% on 18th April 2023. As the saying goes, “along with coming, the mite also grinds.” This is certainly true in the case of the stock market, where a downturn in one company can have a ripple effect on others in the same sector.
For investors who are new to the market and cannot keep up with the intricacies of stock trading, AlgoBulls offers an algo-driven strategy with automatic entry, exit, profit booking, and stop-loss alerts. AlgoBulls becomes your assistant partner in helping you shape your trading journey by providing unlimited paper trades, backtests, industry experts’ help, backend support, and absolutely no commission or brokerage!
In conclusion, the fall of Infy’s stocks has served as a stark reminder of the impact that one company’s performance can have on the stock market as a whole. As an investor, it’s important to stay informed and take precautions to minimize your risk. With the help of platforms like AlgoBulls, investors can trade with confidence and make smarter investment decisions.