Infosys shares fall on rupee spike, outlook fear

Shares in Infosys fell 1.4 percent on concerns the Indian software services exporter may cut guidance in its quarterly results this month because of recent appreciation in the rupee and potential wage hikes.

Nomura has said that it expects Infosys to retain its fiscal 2013 dollar revenue growth guidance of 5 percent but has cut earnings-per-share guidance by around 2 percent to Rs 163 on rupee terms because of the currency impact.

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Nomura also warned any announcement on wage hikes would be key.

"We believe there is a high likelihood of a wage hike in 3Q as growth comes in line with guidance," the investment bank said in a noted dated on Wednesday.

Reuters