Infosys Dips 5% On Top Honcho’s Resignation

Mumbai, July 24: | Updated: Jul 25 2002, 05:30am hrs
Infosys stock slipped by nearly five per cent, following news of the resignation of one of the company’s highest paid professionals, its global sales and marketing head, Phaneesh Murthy. On The Stock Exchange, Mumbai (BSE), the stock of the software major traded in the red, closing at Rs 3,066.90, down 4.7 per cent than its previous close at Rs 3,219.70. A total number of 2,61,806 shares changed hands on the counter.

Dealers from domestic brokerages opined that apart from the resignation of Mr Murthy, Infosys, like the other tech stocks had taken the downward plunge following the sustained fall in the US markets, especially in the tech-heavy Nasdaq.

The volatility in tech stocks is not a new phenomenon in the domestic markets, dealers added. So it is natural that software majors like Infosys falls prey to adversities in the world markets despite having posted excellent results earlier this month.

Sources at Infosys said the exit of Mr Murthy would not make any material impact on its business and reaffirmed its earlier earnings guidance for the fiscal ending-March 2003.

Dealers said that market sentiment as regards tech-stocks is uncertain as the US markets have now entered the panic zone, following the sustained pressure on the Nasdaq.