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The technology services provider, the second-largest IT company in the country after TCS, is contributing 72 points to the Nifty 50 upside, which is nearly a quarter of the 350-points surge that the index has witnessed on its weekly options expiry.
All eyes are now on the earnings that the IT companies will be reporting amidst a slew of cues for these stocks. The biggest trigger of course, will be the inauguration of Donald Trump as US President on January 20, four days after Infosys will be reporting its December quarter earnings.
Trump in a statement recently said that he is in favour of H1-B visas as it is good for the country overall.
But what is in store for Infosys in Q3? Will it raise its guidance yet again?
During the September quarter, Infosys had raised its financial year 2025 revenue growth guidance to 3.75% to 4.5% in constant currency terms, compared to its earlier guidance of a growth between 3% to 4%. That was the second straight quarter of raising guidance, as it had raised its guidance in the June quarter as well from the starting point of 1% to 3%.
Brokerage firm CLSA in a note on Thursday said that Infosys may narrow its constant currency revenue growth band during the December quarter. It expects the company to increase the lower end of its guidance range.
CLSA expects Infosys to guide for a 4.25% to 4.5% revenue growth in constant currency terms for the full financial year.
The brokerage also said that the recent depreciation of the rupee against the US Dollar provides incremental tailwinds for earnings.
Brokerage firm Nomura too has highlighted Infosys as one of its top pick among the largecap IT stocks. The brokerage has a “buy” rating on Infosys with a price target of ₹2,190.
Citi though, remains “neutral” on Infosys, but has increased its price target to ₹2,035 from ₹1,965.
Out of the 48 analysts that have coverage on Infosys, 34 of them have a “buy” rating on the stock, nine of them have a “hold” rating, while five of them have a “sell” recommendation on the stock. Consensus is implying a potential upside of another 6.5% from current levels.
Shares of Infosys are currently trading 3.9% higher at ₹1,956. The stock had gained over 25% in 2024.
