Stock bottoms Nifty 50, set for worst session in 112 yrs
Deal pipeline signals slower pace of demand recovery Morgan Stanley
Analysts await further evidence on discretionary spends analyst

Jan 17 Reuters Shares of India39;s No. 2 software services exporter Infosys fell nearly 6 on Friday and were set for their biggest oneday decline since July 2023, as analysts raised concerns about the quality of earnings following its thirdquarter report.

The stock was down 5.7 as of 1149 a.m. IST, and was the top drag on the IT index and the benchmark Nifty 50, which declined 2.5 and 0.7 respectively.

Its U.S.listed shares fell about 6 overnight.

Infosys on Thursday raised its annual revenue forecast for the third time this financial year as its U.S. banking and retail clients warmed up to spending more on discretionary projects, echoing Tata Consultancy Services and HCLTech.

However, analysts were concerned about the quality of the earnings report, which overshadowed the outlook.

The revenue growth was driven by a higher component of thirdparty items in Infosys39; deal pipeline, which drove concerns around the quality of the beat and raise, Morgan Stanley analysts said in a note.

Given that the commentary on small deals pipeline is not showing any meaningful signs of inflection, we now assume the industrywide recovery to be more gradual than before, they said.

Small deals comprise more than twothirds of the company39;s total deal intake, according to BofA Global…