Infosys shares fell 2% in a two-month low, after the IT major's warning about weak margins in Q3. Shares of India's second-biggest outsourcer were headed for a third straight decline on Tuesday, reported NDTV Profit.
"EBIT (operating) margins for Q3 will be weak due to lower revenue growth and higher investments. However they will improve in Q4," said brokerage Maybank on Monday, quoting Infosys officials who made a presentation at an investor conference organised by Axis Capital earlier this week.
Despite the company's claims that it would maintain margins in the guided 24-26 % band through higher employee utilisation and cost optimisation, the shares of the company came under pressure, said NDTV Profit.
The US Senate has passed a new bill which seeks to impose restrictions on Indian companies â€” the largest users of the US' H1-B visas. The warning has come at a time when sentiments in IT stocks are weak due to the same reason, as reported by NDTV Profit.