Infosys shares erase early gains, close lower

Infosys shares ended a tad lower on Tuesday, recouping all the gains made earlier in the trade.

Shares of the IT giant closed at Rs 2,216.60 apiece on the Bombay Stock Exchange (BSE) Sensex, down 13.20 points or 0.59 per cent, while the scrip ended at Rs 2,215.50 on the National Stock Exchange (NSE) Nifty, down 12.90 points or 0.58 per cent.

Infosys shares had gained nearly 2 per cent after CLSA raised the target to Rs 2,800 from Rs 2,500 and reiterated high-conviction buy rating.

The brokerage had said that the IT services major should see stronger revenue growth in FY16/17 as it gains leadership in digital and traditional services while improving client mining.   

"We expect it to offer more attractive returns for shareholders through a higher dividend-payout ratio (at least 40 per cent) and opportunistic buybacks," the brokerage had said.

CLSA had also said it expected greater M&A activity to strengthen its position in social, mobile, analytics and cloud services.

(Reuters)