Infosys Share Price Recovers Early Losses, Rises Over 2%
Infosys shares rose nearly 2 per cent on Wednesday, a day after a plunge in the stock wiped out nearly Rs 53,000 crore of investor wealth amid whistleblower complaints that its top two executives engaged in unethical practices. Infosys shares rose as much as 1.87 per cent to Rs 655.35 apiece on the BSE in morning, from their previous close of Rs 643.30. On the National Stock Exchange (NSE), the Infosys stock climbed 1.85 per cent to touch Rs 655.45 on the upside. (Also read: Infosys raises revenue guidance, Q2 profit rises 6%)
At 11:51 am, Infosys shares traded up 1.17 per cent at Rs 650.85 apiece on the BSE, outperforming the benchmark Sensex index which was up 0.42 per cent at 39,125.65.
The shares opened Rs 6 lower at Rs 637.30 on Wednesday and fell as much as 4.40 per cent to Rs 615.00 apiece on the BSE, before recovering the day's losses.
Analysts say the weakness in Infosys shares may be temporary however any further losses will make the stock more attractive.
“Another 5-10 per cent fall in Infosys shares will be a good buying opportunity,” IDBI Capital head of research AK Prabhakar told NDTV.
Overnight in the US, Infosys American Depositary shares fell 3.01 per cent to end at $9.01 - after registering their worst fall since 2013 in Monday's session.
On Tuesday, Infosys shares on the Bombay Stock Exchange had ended 16.21 per cent lower at Rs 643.30 to log their worst single-day drop in over six years. That pulled the market capitalisation or MCap of India's second largest IT services company to Rs 2.74 lakh crore, from Rs. 3.27 lakh crore on Friday.
Tuesday's sharp losses in the Infosys stock came after the company said it had received complaints from anonymous whistleblowers alleging certain unethical practices. The whistleblowers accused CEO Salil Parekh of leading an effort to shore up profits through irregular accounting, and the company said one of the complaints dealt largely with allegations relating to his international travel to the US.