With Vishal Sikka stepping down from the post of CEO at Infosys, the shares of India’s second largest information technology company tumbled more than 10%. Infosys stock today fell as much as 13.38% to the 52-week low of Rs 884.2 while on contrary the shares of rival company TCS advanced 2.58% to the day’s high of Rs 2,549.9.
Other blue-chip stocks which gained on BSE Sensex are Power Grid (up 1.53%), HUL (up 1.31%), Bharti Airtel (up 1.01%), Wipro (up 0.35%) and Reliance Industries (up 0.25%). Indian equity markets also fell sharply snapping their three-day gains as both the leading indices fell about 1%. The benchmark Sensex lost more than 400 points to trade below 31,500 – level and the broader Nifty 50 also plunged over 100 points to trade below 9,800 points.
The major drag on both the indices was due to the drop in shares of the heavyweight IT company Infosys. The drag in Infosys stock contributed around 250 points out of the total 400 points slump in the Sensex. Other laggards on the benchmark were HDFC, HDFC Bank, Sun Pharma, Tata Motors and State Bank of India while the shares of TCS, Hindustan Unilever, Power Grid, Reliance Industries and Bharti Airtel helped to trim the losses.
The 30-share barometer was trading down 1.21% at 31,400.35 points while the wider Nifty 50 was trading 1.08% lower at 9,797 points. All the sectoral indices of NSE were trading in negative territory with losses up to 2.55%. Nifty IT, Nifty Pharma were the major losers.
Earlier today, Vishal Sikka, who had joined Infosys three years ago in 2014 from SAP, said that he is resigning from Infosys on the account of rising personal disruptions as founder Narayana Murthy’s attacks on the company management over corporate governance continue to grow. Vishal Sikka said that 100s of hours were spent on tackling drumbeat of distraction and that the attacks undermined the good work done by the company. UB Pravin Rao will serve as the interim MD & CEO of Infosys.