After the internal management changes at Narayana Murthy’s company, Infosys shares tumbled overnight, raising concerns for shareholders of the top IT firm. The shares struggled despite the spike in Nifty and Sensex over the last week.
Infosys shares opened at one per cent less than the previous day after the company’s chief financial officer, Nilanjan Roy resigned from the post, saying that he wants to focus on his personal aspirations.
IT companies continue to suffer due to recent changes in the top brass, and Roy’s resignation led to a significant drop in Infosys shares. Soon after the CFO announced his exit, Infosys shares dropped three per cent overnight.
The markets opened on December 12 with Infosys trading at ₹1,478.90 apiece, with the shares further dropping at 1 pm, trading at ₹1,473.90 apiece. However, the firm reassured all the shareholders after Roy’s exit that the transition would be smooth.
Brokerage firm Morgan Stanley said that this sudden change in top management of one of India’s most valued companies could have a major impact on the sentiments of the shareholders.
Meanwhile, many investors are looking at the dip in shares as a stock-buying opportunity. According to past trends, it is likely that the share prices will recover soon. The dip in the shares of Infosys came as a surprise as Sensex crossed the 70,000 points mark on December 11, mostly due to a spike in share prices of IT companies.
Sensex crosses 70,000 points mark
Creating history on the stock market, the BSE Sensex crossed 70,000 points on December 11. This is the first time that the index has touched 70k, with the gains majorly credited to firms like ITC, Mahindra and Mahindra, and Larson and Toubro.
Infosys is considered to be the fifth most valued company in India, with an overall revenue of over ₹1.49 lakh crore.