Infosys Shares Fall As Global Client Terminates $1.5-Billion AI Contract
Infosys shares drop as global company cancels $1.5B AI contract signed in September.
Shares of Infosys Ltd. fell after a global client terminated the $1.5-billion AI contract signed in September.
The companies won't go ahead with the "master agreement", India’s second largest IT services firm said in an exchange filing on Saturday.
On Sept. 14, the company announced that it has signed a memorandum of understanding with a global company, but didn't reveal the name of the client.
The scrip fell as much as 2.55% to Rs 1,523 apiece. It pared losses to trade 1.84% lower as of 09:23 a.m. compared to a 0.15% advance in the NSE Nifty 50 Index.
The stock has risen 10.15% year-to-date. The relative strength index is at 57.92.
Of 37 analysts tracking the company, 21 maintain a 'buy' rating, 16 recommend a 'hold,' and eight suggest 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a downside of 1.2%.
