Many fund managers at domestic institutions had cut their exposure to Infosys shares ahead of the March quarter earnings.
The results, announced on Friday, eroded a sizeable portion of the gains made by the stock in January-March.
Analysts said investors could be looking at Infosys shares more as a trading bet, rather than a buy-and-hold stock, which it has historically known to be.
The stock had returned as much as 30 per cent in the March quarter and hit a 52-week high when the benchmark Sensex declined.
The stock fell 21 per cent on Friday, to the levels it was trading in early January.
“Infosys has turned out to be largely a trading bet. Lots of institutions were selling the counter during the previous quarter (when the stock was rising),” said Sudip Bandyopadhyay, managing director & chief executive officer of Destimoney Securities.
Various mutual fund managers raised Infosys holdings in January by as much as one per cent of their scheme corpus, according to Securities and Exchange Board of India data, after the information technology major’s
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