Indian shares traded in the United States came under pressure on Wednesday after Infosys Technologies forecast lower than expected sales, casting doubt over the local software services industry. Kicking off results for India's nearly $60 billion IT sector, Infosys estimated tepid revenue growth due to global economic uncertainty. It said margins would decline for the full year. The company's shares fell 13.4 percent to $63.21.
Wipro Limited, another global information technology services company, fell 5.2 percent to $14.07 as Infosys highlighted currency risks for the export-focused sector. The BNY Mellon index of leading American Depository Receipts fell 5.6 percent, its biggest drop in three months.
Indian shares performed far below the wider market. The BNY Mellon index of leading American Depository Receipts (ADRs) fell just 0.2 percent while the US benchmark S&P 500 index rose 0.4 percent. European shares traded in New York were lower. Deutsche Bank has put two Hong Kong traders on leave after they were arrested by the city's anti-corruption agency for alleged fraud, the German bank said on Friday
The arrests come at a time when Deutsche Bank is under scrutiny across the globe and its shares in the German bank fell 2.1 percent to $59.29. The BNY Mellon index of leading European ADRs fell 0.2 percent. In Europe, the FTSEurofirst 300 index of top shares ended 0.3 percent higher.
Shares of energy company Petrobras rose 2.4 percent to $37.81. The company got a boost from a news report that the government was weighing whether to reduce fuel taxes, which could allow Petrobras better margins on gas prices without raising costs for consumers and pressuring inflation. Receipts with the BNY Mellon index of leading Latin American ADRs rose 0.6 percent.
Comments
Comments are closed for this article.