The downgrade of US credit ratings by S&P and the possibility of another recession have led to a sell-off of IT stocks. Indian IT firms earn a major chunk of their revenue from the US and the Europe.
Infosys has the second largest weightage on the Sensex after Reliance and a sell-off in this counter had led to a big decline on the BSE benchmark.
Infosys has the second largest weightage on the Sensex after Reliance and a sell-off in this counter had led to a big decline on the BSE benchmark.
In a statement to NDTV, Infosys CEO Kris Gopalakrishnan said, “It is too early to say. There are fears of another recession in the U.S. and a debt crisis in Europe. We were able to react very quickly in the past (2008) when the recession happened. These responses are still fresh in our memory and I believe that the industry may be able to withstand another global downturn.”
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