Vishal Sikka stumps markets, Sensex skids 271 points, Infosys crashes
Infosys ended up as the biggest loser in the 30-share Sensex -- sinking as much as 9.60 percent to Rs 923.10
Mumbai: Vishal Sikka's surprise resignation as Infosys CEO on Friday threw markets off-track as the Sensex careened off 271 points while the Nifty managed to end above 9,800.
The fast-paced developments at India's second-largest IT firm were the talking point throughout as the stock took a severe beating dragging down the markets. It ended up as the biggest loser on the 30-share Sensex map -- sinking as much as 9.60 percent to Rs 923.10, the lowest since 2 May, 2017. Intra-day, it had even hit a 52-week low, but then recovered somewhat.
The company's market valuation slumped Rs 22,518.98 crore to Rs 2,12,033.02 crore.
Moreover, a deadly attack in Spain and growing concerns over the direction of US President Donald Trump's economic agenda cast a long shadow, analysts said.
After three straight sessions of gains, the Sensex opened lower and dropped further before ending down 270.78 points, or 0.85 percent, at 31,524.68. It had rallied 581.87 points in the previous three sessions.
Weighed down by the IT index, the 50-share Nifty too closed lower 66.75 points, or 0.67 percent, at 9,837.40. During the session, it shuttled between 9,783.65 and 9,865.95.
For the week, both Sensex and Nifty recorded gains of 311.09 points, or 0.99 percent, and 126.60 points, or 1.30 percent, respectively. This is markets' sixth weekly rise in seven.
"Markets slid due to the unprecedented exit of Infosys CEO, which put investors and stakeholders in doldrums. On the global front, investors were jittery on account of a terrorist attack in Europe, which also dampened sentiment," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
Persistent capital outflows by foreign institutional investors, who have been selling for the past six straight days, and the end of the quarterly earnings season amid absence of any positive trigger hastened the downfall.
The broader markets too cracked, with BSE small- and mid-cap indices ending in the red.
Other scrips that contributed to the overall slide were Sun Pharma, NTPC, HDFC and Coal India which fell by up to 3.81 percent.
Buying in Hindustan Unilever, PowerGrid, TCS, Bharti Airtel, ITC, RIL and M&M arrested the fall.
The BSE IT index burnt its fingers as the worst performer, down 3.53 percent. The weakness in technology, healthcare and realty indices only made things worse.
Foreign portfolio investors (FPIs) remained net sellers offloading shares worth Rs 981.05 crore while domestic institutional investors (DIIs) bought shares worth Rs 828.59 crore yesterday, showed provisional data.
Other Asian markets finished lower. European stocks also moved down in their early session.
Based on average employee costs of $25,000 per annum for India-based resources and $50,000 for US resources, the move will release around $100 billion in salaries and associated expenses
PowerGrid, NTPC, ITC were among the top gainers in the Sensex pack, while Bajaj Finserv, HDFC, Asian Paints and Dr Reddy’s were among the laggards
With gains led by banks, financials and IT, the BSE Sensex gained 218 points and was trading at 52,541 and NSE Nifty was trading at 15,744 after it shot up by 53 points at 9.18 am