Infosys Ltd on Friday denied a media report that the founders of India’s second-biggest software services exporter were looking to sell their entire 12.75 per cent stake in the company, even as Indian shares took a hit owing to initial news reports. Infosys was trading 1.62 per cent lower, after falling as much as 3.5 per cent, despite the company denying a report that said the company’s promoters were looking to sell their entire stake.
According to the report, the Infosys founders were exploring such a sale, citing people familiar with the developments, although it carried a denial of such a move by one of the firm’s founders, Narayana Murthy. Infosys “has no information on any such development,” the company said in a statement, adding that the “speculation has already been categorically denied by the promoters.” Earlier this year, Infosys’ founders had expressed concerns about the manner in which the company was being run by its current management and board.
Global market sentiment took a hit after British elections left no single party with a clear claim to power ahead of talks to exit the European Union, sideswipe investors who had already weathered major risk events in the United States and Europe. “The overhang of global cues will definitely be there on markets across the world,” said Devon Chokes, promoter, KKR Chokes Investment Managers.
Both the BSE and NSE indexes were headed for their first weekly fall in five. Analysts have been advising investors to be cautious in the near term after a record-breaking rally in the indexes over the recent past. Both the indexes had hit fresh record highs on Tuesday.
“That’s why investors are not pumping in money now at this stage, (but are) sitting on cash,” Chokes added. India is due to post inflation data on Monday amid rising hopes for a central bank rate cut later this year. The broader NSE index was down 0.16 per cent at 9,632.15 as of 0621 GMT, and down 0.29 per cent for the week. The benchmark BSE index was 0.14 per cent lower at 31,168.54 and down 0.34 for the week. Infosys pulled down other IT stocks and the Nifty IT index fell as much as 1.68 per cent to its lowest since May 18. Infosys lost 2.4 per cent while Tech Mahindra Ltd fell 2.6 per cent.
Meanwhile, embattled mobile carrier Reliance Communications continued its slide, falling as much as 3.2 per cent. The company on Wednesday pushed back against Moody’s and Fitch, disagreeing with the ratings agencies’ downgrade.