The tremors caused by the exit of Infosys CEO Vishal Sikka continued to hit the stock on Monday, with the information technology (IT) giant falling another 5.37 per cent on the bourses amid reports that the company is unlikely to miss the FY18 earnings targets. The benchmark Sensex gave up early gains to end 266 points lower, while the Nifty cracked below the 9,800-mark, pulled down by heavyweight Infosys and other blue-chips amid a lower opening in Europe.
Market capitalisation of Infosys fell by another Rs 12,000 crore on Monday. Investors have now lost Rs 34,500 crore in Infosys shares in the last two sessions as the market cap has now tanked to Rs 200,640 crore. Despite the Rs 13,000-crore share buyback announcement, Infosys scrip, once the favourite of mutual funds, closed at Rs 873.50 on the BSE on Monday. It had plunged 9.60 per cent on Friday.
The 30-share Sensex ended 265.83 points lower, or 0.84 per cent, at 31,258.85. The gauge had lost 270.78 points in the previous session on Friday. The broader NSE Nifty moved between 9,884.35 and 9,740.10, before ending down 83.05 points, or 0.84 per cent, at 9,754.35. “There’s uncertainty over the company’s future… especially about the new CEO. There’s also talk of revamping the board,” said veteran BSE dealer Pawan Dharnidharka.
Jayant Manglik, president, retail distribution, Religare Securities, said: “Though the market opened with an uptick, but selling pressure at higher level gradually pushed the benchmark lower.”
Weakness persisted in the market amid heightened global tensions and uncertainty in the US administration. “While the markets did open on a positive note, cautious investors capped gains and dragged them lower. Global investors were skittish as the joint military drills between the US and South Korea begin from Monday. Additionally, US equities closed off their session lows on Friday after Steve Bannon, one of President Donald Trump’s top advisors, left the administration, further casting doubts over the current administrations abilities to bring about positive change,” said Karthikraj Lakshmanan, senior fund manager, BNP Paribas MF.
All the sectoral indices traded in the red with the healthcare and PSU banking indices losing over one per cent.
Meanwhile, the rupee pared its most of early gains to end marginally up at 64.14 against the dollar due to demand from importers and corporates. The rupee had opened with modest gain of 10 paise at 64.05 per dollar but later traded in a tight range in absence of any fresh macroeconomic clue, dealers said.