Despite high-level exits since June this year, Infosys Ltd share price retains a gain of nearly 50 per cent since its founder N R Narayana Murthy returned to the helm of affairs at the country's second largest IT firm.
In the eighth major exit since the return of Narayana Murthy six months ago, V Balakrishnan, Infosys Ltd head of BPO business, quit the company this month on whose Board he was also a member.
Infosys' share price is still trading at a record high and has shot-up by 48.85 per cent since June, although it fell by over 2 per cent a day after V Balakrishnan's exit.
On December 20, Infosys share price had hit a 52-week high level of Rs 3,569.90.
The market value of the Infosys Ltd has gained Rs 65,704 crore since Narayana Murthy's return.
"We believe that exit of Balakrishnan will not make any material impact at a business level as he was not heading a very big chunk of the company's revenue but the development does indicate that there is a severe management transition happening in the company," said Ankita Somani, Research Analyst IT, Angel Broking.
"Though the impact of top management resignations at Infosys will not immediately make an impact to its topline, it may have some effect over a medium term," she added.
Analysts said the rise in Infosys scrip is also because of the weak Indian rupee. Indian rupee is at present trading at 61.79 level against the US dollar. Fall in rupee versus the US currency is broadly seen as a positive for export-focussed sectors like the Indian IT space as large IT companies benefit from a weaker Indian currency, as it positively impacts their profit margins.
Big IT companies earn a major chunk of their revenues in dollar from their US clients.
According to Kishor Ostwal, CMD, CNI Research, "As long as rupee holds at 62-level, Infosys will remain in upward direction."
Said to be a top contender to the post of Chief Executive Officer, Balakrishnan, who joined Infosys in 1991 and later became its chief financial officer,