Sensex plunges nearly 300 points; Infosys share tanks over 7.5% after Vishal Sikka resigns

Infosys stock contributed majorly to the overall weakness in benchmark indices, after the company's CEO and MD Vishal Sikka in a sudden announcement decided to step down from his current position

FP Staff August 18, 2017 10:53:48 IST
Sensex plunges nearly 300 points; Infosys share tanks over 7.5% after Vishal Sikka resigns

Domestic stock indices came under severe hammering early Friday trade much in sync with weakness in other global indices, as benchmark Sensex plunged nearly 300 points weighed down by steep fall in software major Infosys.

Infosys stock contributed majorly to the overall weakness in benchmark indices, after the company's CEO and MD Vishal Sikka in a sudden announcement decided to step down from his current position in view of growing discontent with the co-founders led by Narayana Murthy over the corporate governance issue.

Snapping the recent bout of rally, benchmark Sensex opened gap down and tumbled to a low of 31,500.84, down 294 points. At, the index was down 240 points, or 0.7 percent at 31,556. The gauge had gained 581.87 points in the previous three sessions.

Sensex plunges nearly 300 points Infosys share tanks over 75 after Vishal Sikka resignsThe broader 50-stock Nifty was down 0.6 percent or fall of 61 points at 9,843.20.

Leading the fall, share price of the Bengaluru-headquartered Infosys crashed over 7.5 percent to a low of 944. Trimming some losses, Infosys was now down 6.8 percent at Rs 951.85.

"...The board of directors of Infosys Limited has at its meeting today accepted the resignation of Dr Vishal Sikka as the Managing Director and Chief Executive Officer of the company with immediate effect," the IT firm said in a BSE filing.

Infosys COO U B Pravin Rao has been named as the Interim -MD and CEO of the firm.

"The succession plan for appointment of a new Managing Director and Chief Executive Officer has been operationalised by the board and a search for the same has been commenced," Infosys added.

Besides, weak global cues on a deadly attack in Spain and rising concerns over the fate of US President Donald Trump's economic agenda also influenced investors sentiment.

The markets also witnessed intense selling pressure in recent gainers.

Brokers said sentiment on the domestic bourses suffered a jolt following a meltdown global equities on a deadly attack in Spain and renewed concerns over the fate of US President Donald Trump's economic agenda.

Other laggards that dragged down the key indices  were Sun Pharma, HDFC Ltd, Tata Motors, SBI, Kotak Bank, HDFC Bank, Lupin, Adani Ports, Axis Bank, Dr Reddy's, Coal India and Tata Steel.

In Asia, Japan's Nikkei fell 1.02 percent, while Shanghai Composite Index was quoting 0.33 percent lower in early trade today. Hong Kong's Hang Seng index too shed 0.82 percent.

The Dow Jones Industrial Average ended 1.24 percent lower in yesterday's trade.

With PTI inputs

Updated Date:

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