Infosys shares slip on Chandrashekar Kakal's exit

Infosys shares slipped after a positive start on Friday as analysts said the exit of senior vice president Chandrashekar Kakal is a setback for India's number 2 software exporter.

Mr Kakal, a member of the Infosys' executive council, will quit effective April 18, Infosys said in a filing to the stock exchanges on Thursday. It did not give a reason for Kakal's resignation. (Read the full story)

Macquarie said exits could weaken already dampened sentiment for Infosys. Nomura said it is viewing the spate of management exits at Infosys negatively. JP Morgan said the exodus of senior management seems to be never ending.

Mr Kakal is the ninth high-ranking executive to quit Infosys since the company's co-founder NR Narayana Murthy returned from retirement in June 2013. The resignation comes days ahead of Infosys fourth quarter earnings announcement due on April 15.

Last week, Mr Murthy had cautioned about the likelihood of more exits from Infosys.

"Over the next few months, you will see some more exits because current CEO SD Shibulal will retire after he complete 60 in March 2015," Mr Murthy told analysts at an investors meeting organized by Barclays last week.

Infosys shares turned lower after rising as much as 1 per cent in morning trade. As of 09.45 a.m., Infosys traded 0.5 per cent lower at Rs 3,286.90 underperforming the broader Sensex, which was up 0.22 per cent. (Track stocks)

Trading strategy:

Market analyst Sarvendra Srivastava says if Infosys shares fall by Rs 100, another 6-7 per cent decline cannot be ruled out. Technical analyst Rajat Bose says Infosys has a strong support at Rs 3,247-3,230, but if these levels are broken, the stock can fall by Rs 200.