Infosys shares closed above the Rs 3,000 mark after a gap of nearly two years on Thursday. The stock last closed above the mark on April 13, 2011. Two days later the stock fell sharply when it reported fourth quarter earnings. Infosys is India's second-largest IT outsourcer after Tata Consultancy Services.
Infosys shares closed 1.3 per cent higher at Rs 3,004.75 in line with the broader BSE IT index, which gained 1.7 per cent in a weak market today. (Also read: 10 reasons why Infosys hit a 2-year high)
On April 15, 2011, the company's shares dropped nearly 10 per cent, partly on weak earnings and also because the company's long time lieutenant Mohandas Pai announced his exit, to close at Rs 2,988.80 after opening at Rs 3,316.85. Since then, the stock has been under tremendous pressure, whipped down quarter after quarter as the company missed results estimates and the new management took time to adjust to the global economic slowdown.
The downtrend ended in 2013 after Infosys beat Street estimates for the October to December quarter, and announced an upward revision in sales forecast for the fiscal year 2012-13. Infosys shares have gained nearly 30 per cent since the announcement of December quarter earnings on January 11, 2013.
Investors bought shares after the company's management led by CEO and managing director S D Shibulal sounded optimistic for the first time in many quarters.
"We continue to gain confidence from a strong pipeline of large deals. However, the broader economic environment remains difficult. Even so, we remain cautiously optimistic about the January-March quarter", Mr Shibulal had told NDTV post results.
Some analysts say the worst might be over for Infosys post the strong results, and brokers have turned positive on the stock for the first time in many months.
A fortnight ago, global investment bank JPMorgan said Infosys "is likely turning the corner", given the Indian software services exporter is proving more flexible in winning deals, embracing "a more realistic" margin profile and trying to re-engage with employees.