Infosys shares extend losses after CEO quits
Mon Aug 21 2017
Rajesh Sharma (2003 articles)

Infosys shares extend losses after CEO quits

Shares of Infosys Ltd fell as much as 4.6 percent on Monday to a near three-year low, slumping for a second consecutive session, after brokerages including Nomura downgraded the stock following the resignation of its chief executive.

Shares slumped 9.6 percent on Friday after CEO Vishal Sikka unexpectedly resigned after a long-running feud with the company’s founders, wiping out $ 3.45 billion off Infosys’ market value.

Nomura downgraded the stock to “reduce”, saying the uncertainty over Infosys’ management could hamper long-term growth, while expressing worries that the tussle between the founder and promoters could escalate.

The concerns about Infosys’ future trumped the company’s approval on Saturday of a 130 billion rupees ($ 2.03 billion) share buyback.

As of 0421 GMT, Infosys shares were down 2.5 percent, hitting their lowest since September 2014.

 

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.

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