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  1. Infosys market cap: IT major falls to 10th spot on most valued firms list

Infosys market cap: IT major falls to 10th spot on most valued firms list

Infosys, India's second-largest software services company, lost nearly `34,000 crore in market capitailisation (market-cap) and its stock slipped around 14.5% in the past two trading sessions after Vishal Sikka resigned as the chief executive officer and managing director last week.

By: | Published: August 22, 2017 6:37 AM
Infosys,  IT major, IT company, Vishal Sikka, market capitailisatio With a market capitalisation of `2.01 lakh crore, Infosys now ranks as the tenth most valued Indian company. (Reuters)

Infosys, India’s second-largest software services company, lost nearly `34,000 crore in market capitailisation (market-cap) and its stock slipped around 14.5% in the past two trading sessions after Vishal Sikka resigned as the chief executive officer and managing director last week. With a market capitalisation of `2.01 lakh crore, Infosys now ranks as the tenth most valued Indian company. On Monday, the Infosys stock touched its fresh 52-week low during intra-day trade at `870 and closed the session 5.37% lower at `873.50 a share. The share price fell despite the company’s share buyback announcement last week. Shares of Infosys have given -13.57% Year to Date (YTD) returns in 2017, while BSE Sensex has given 17.40% in returns.

The stock lost approximately `11,392.8 crore worth market cap on Monday. Three months average volume on BSE and NSE has been approximately 53.18 lakhs, but on Monday 4.96 crore shares of Infosys were traded. “The exit sets the company back during a phase of uncertainty in the industry. Expect distractions, employee attrition and loss of revenue market share,” said Kotak Institutional Equities in a report.

“We forecast a loss of revenue market share as the company deals with the ramifications of the CEO resignation and consequent impact on talent retention, share of wallet of client spending and deal renewal,” the report added. Of the 50 brokers tracking the Infosys stock on Bloomberg, 40 recommended a ‘buy’ rating, 36 asked its investors to ‘sell’ the stock and 24 have recommended a ‘hold’ rating.

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