Infosys Ltd, one of India's leading IT services companies, witnessed a significant decline in its share price during Tuesday's trading session, falling nearly 2% as investors positioned themselves ahead of the upcoming dividend record date.
Stock Performance Analysis
The Infosys stock opened at ₹1,488.00 on the BSE, showing early weakness compared to the previous close of ₹1,495.85. Throughout the trading day, the stock remained under pressure, hitting an intraday low of ₹1,467.00 before settling around the ₹1,470 mark.
Key trading metrics revealed:
- Opening price: ₹1,488.00 on BSE
- Previous close: ₹1,495.85
- Intraday low: ₹1,467.00
- Decline of approximately 1.7-2%
Dividend Record Date Approaching
The market movement comes as Infosys approaches its crucial dividend record date of June 1, 2024. The company has declared an interim dividend of ₹8 per share, which translates to a dividend yield of approximately 0.53% based on current market prices.
"The stock decline appears to be a typical ex-dividend adjustment where investors sometimes book profits ahead of the record date," noted market analysts.
Broader Market Context
Infosys wasn't alone in facing selling pressure. The broader IT sector showed weakness, with the Nifty IT index declining by 1.5%. This sectoral performance contributed to the overall market sentiment, though the benchmark Nifty 50 managed to trade with modest gains.
Notable sector observations include:
- Nifty IT index down 1.5%
- Mixed performance in banking stocks
- Select pharma and auto stocks showing strength
Technical Perspective
From a technical analysis standpoint, Infosys shares have been trading in a range-bound pattern over recent sessions. The current decline brings the stock closer to important support levels that traders are watching closely.
The trading volume remained healthy, indicating active participation from both institutional and retail investors. Market experts suggest that the stock might find support around the ₹1,460-1,470 levels given the fundamental strength of the company.
Long-term Outlook
Despite the short-term volatility, most analysts maintain a positive long-term view on Infosys. The company's strong order pipeline, digital transformation expertise, and consistent dividend history continue to make it a favorite among long-term investors.
The upcoming dividend payment of ₹8 per share represents the company's commitment to shareholder returns, a factor that typically supports the stock during periods of market uncertainty.
Investors are advised to monitor the stock's behavior around the record date and consider the company's strong fundamentals when making investment decisions.
