Infosys' chief operating officer UB Pravin Rao indicated that margins in the June quarter may fall by 200 basis points owing to salary hikes and visa costs. MUMBAI: Information technology major Infosys' shares plunged the most in nine months on Thursday after a top company official said weaker spending in retail, energy and insurance sectors could lead to "quarterly bumps". "If the other quarters also get impacted, the stock will see a huge beating," said Sarabjit Kour Nangra, VP Research at Angel Broking "We are building a decline of 160 basis points in margins for Q1," he said.Analysts advise buying into the fall as the management's tone on its fullyear guidance continues to be positive. On a one-year forward basis, the stock is at 17.85 times.Risks to performance would be higher, however, if the volatility in margin growth persists over a few quarters.

Source: Economic Times June 10, 2016 00:07 UTC