Sensex sheds 270 points over Infosys turf war

RSTV Bureau

sensex-down-400x265Vishal Sikka’s surprise resignation as Infosys CEO threw markets off the track on Friday. Sensex shed 270.78 points while the Nifty lost 66.75 points.

Infosys stock also took a severe beating, sinking as much as 9.60 per cent to Rs 923.10, the lowest since May 2, 2017. Intra-day, it had even hit a 52-week low, but then recovered somewhat to finally end 97 points down to close at 923.25.

The company’s market valuation slumped Rs 22,518.98 crore to Rs 2,12,033.02 crore after Sikka blamed founder Narayana Murthy for his exit.

After three straight sessions of gains, the Sensex opened lower and dropped further before ending 270.78 points in the red, or 0.85 per cent, at 31,524.68. It had rallied 581.87 points in the previous three sessions.

Weighed down by the IT index, the 50-share Nifty too closed lower 66.75 points, or 0.67 per cent, at 9,837.40.

For the week, both Sensex and Nifty recorded gains of 311.09 points, or 0.99 per cent, and 126.60 points, or 1.30 per cent, respectively.

“Markets slid due to the unprecedented exit of Infosys CEO, which put investors and stakeholders in doldrums. On the global front, investors were jittery on account of a terrorist attack in Europe, which also dampened sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

Other stocks that contributed to the overall slide were Sun Pharma, NTPC, HDFC and Coal India which fell by up to 3.81 per cent.

(With inputs from PTI)