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India's Sensex Suffers First Drop in a Week as Infosys Plunges

Bloomberg logoBloomberg 18-08-2017

(Bloomberg) -- Infosys Ltd. led a decline in India’s benchmark equity index after Vishal Sikka resigned as chief executive officer of Asia’s second-largest outsourcer of software services.

The S&P BSE Sensex dropped 0.9 percent to 31,524.68 in Mumbai, falling for the first time in four sessions, and following declines in stock markets across Asia. Infosys slid 9.6 percent, the most since April 2013, and was the biggest drag on the benchmark. Thirteen of the 19 sector indexes compiled by BSE Ltd. dropped, led by the technology group, that fell to its lowest level in over a month.

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Infosys’s slide came one day after it surged 4.7 percent on an announcement that it would consider buying back shares. Sikka, who will remain with the company as executive vice-chairman, cited a continuous stream of “distractions and disruptions” in his resignation letter to the board. The company has appointed Pravin Rao as interim managing director and chief executive officer.

“It is very unfortunate and disturbing for the growth of a company which was a value creator,” said Gaurang Shah, head investment strategist at Geojit Financial Services Ltd. in Mumbai. “We wish wisdom prevails upon the management to ensure growth of the company, future of the employees and interest of all stakeholders big and small is secured.”

Summary

  • NSE Nifty 50 Index -0.7% at 9,837.40
  • Wall Street Finance surges 20% to highest since Nov. 2010 after Ebix agreed to buy its Money Transfer Service Scheme business
  • Dish TV +5.4%; raised to buy at Nomura

To contact the reporter on this story: Nupur Acharya in Mumbai at nacharya7@bloomberg.net.

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Brian Lysaght

©2017 Bloomberg L.P.

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