Infosys shares extend decline as brokerages downgrade stock over fears of uncertainty
Nomura downgraded the stock to 'reduce', saying the uncertainty over Infosys' management could hamper long-term growth
MUMBAI: Shares of Infosys Ltd fell as much as 4.6 percent on Monday to a near three-year low, slumping for a second consecutive session, after brokerages including Nomura downgraded the stock following the resignation of its chief executive.
Shares slumped 9.6 percent on Friday after CEO Vishal Sikka unexpectedly resigned after a long-running feud with the company's founders, wiping out $3.45 billion off Infosys' market value.
Nomura downgraded the stock to "reduce", saying the uncertainty over Infosys' management could hamper long-term growth, while expressing worries that the tussle between the founder and promoters could escalate.
The concerns about Infosys' future trumped the company's approval on Saturday of a 130 billion rupees ($2.03 billion) share buyback.
As of 0421 GMT, Infosys shares were down 2.5 percent, hitting their lowest since September 2014.
Tata Steel, Bajaj Finserv and SBI were among the top gainers at both the BSE Sensex and NSE Nifty50 whereas Dr Reddy and Axis Bank were among the top losers in both the indices
Market Roundup: Sensex ends 638 points higher, Nifty closes at 15,824; today’s top gainers and losers
The top gainers on the BSE were Tech Mahindra, Bajaj Finance, Bharti Airtel, Bajaj Finserv, and Tata Steel, while the top laggards were Hindustan Unilever, Asian Paint, Bajaj Auto, and Mahindra & Mahindra
BSE Sensex closed at 52,198.51 with a loss of 354.89 points or 0.68 percent