Infy stocks crumble in trade on expectations of huge billion dollar acquisition

Infosys Technologies Ltd., India's 2nd ranked software services provider, fell nearly 4 percent on market buzz that the Bangalore-based giant may announce an acquisition post market hours today.

Infosys said it would make a major announcement at 5 pm today evening, according to its website. The expectation is that Infosys may unveil a billion-dollar purchase, which could hurt earnings in the coming quarters.

As a consequence, Infosys fell 42 rupees, or 3.6 percent, to 1,133.80 rupees on the National Stock Exchange where 22 lakh shares were traded compared with a 5-day average of 29 lakh shares.

Infosys' market capitalisation has gained 27 percent in the past one year to 2.62 lakh crore rupees. The stock trades at 4.8 times book value of 236 rupees.

(Image credits: Indiatimes)