Infosys shares reverse gains to end lower on profit-booking

Tags: Companies
Shares of IT giant Infosys erased early gains and ended with a loss of nearly one per cent on the NSE today on profit-booking after the company named former SAP executive board member Vishal Sikka as its new CEO.

After rising 3.75 per cent to Rs 3,298 in intra-day trade, the stock of the IT services pioneer in the country failed to hold on to the gains. It ended at Rs 3166.60, down 0.38 per cent on the BSE.

At the NSE, Infosys shares settled 0.92 per cent lower at Rs 3,164.05.

In terms of volume, 2.73 lakh shares of the company changed hands at the BSE, while over 26 lakh shares were traded at the NSE during the day.

Amid expectations of the company finally announcing its new CEO shortly, the Infosys had stock ran up and gained about 5 per cent in the past week after falling in the preceding three months.

"Announcement of new CEO could lead to restoration of investor confidence in to the stock for the time being. Additionally, this move would bring more clarity inside the organisation on top management front.

"With a new top management in action, we could see better clarity emerging on sales strategy from here-on. This is a positive development for Infosys as there have been a series of senior level exits in recent times," said Daljeet Singh Kohli, Head of Research, IndiaNivesh Securities Ltd.

Infosys today named former SAP executive board member Vishal Sikka as its new chief executive officer, the first time the nation's second-largest software services exporter will have a non-founder as CEO.

Sikka, 47, will replace S D Shibulal, one of the seven engineers who founded Infosys in 1981, from August 1, Infosys said in a statement.

Also, the firm's Executive Chairman N R Narayana Murthy and Executive Vice Chairman S Gopalakrishnan will step down on June 14. Murthy will be designated as chairman emeritus from October 11.

Sikka, who will also be the company's MD, quit SAP in May. He comes in at a time when Infosys has had four straight years of narrowing margins. Besides, almost a dozen senior executives have left since last year when co-founder Murthy returned as chairman.

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