Infosys Tanks 16% After Whistleblower’s Complaint
Equity benchmark indices closed in the red on Tuesday amid mixed global cues while software major Infosys recorded its sharpest intra-day fall in more than six years after a whistleblower complaint accused senior company officials of indulging in unethical practices.
The BSE S&P Sensex closed 335 points lower at 38,964 while the Nifty 50 was down by 72 points at 11,590. Sectoral indices at the National Stock Exchange were mixed with Nifty IT slipping by 4.8 per cent.
Among stocks, Infosys was the top loser at Rs 640 per share — down by 16.65 per cent — a day after an anonymous group calling itself ‘ethical employees’ alleged in a letter to the board of Infosys and the US Securities and Exchange Commission (SEC) that the company is taking unethical steps to boost short-term revenue and profits.
Tata Motors skidded by over 4 per cent, Bajaj Finserv by more than 3 per cent, Bharti Airtel and HCL Technologies by 2.8 per cent each.
However, those which gained were Dr Reddy’s, ICICI Bank, Bharat Petroleum Corporation, Titan, and Cipla.
In the morning trading, Yes Bank had gained over 10 per cent amid reports that it is likely to take over Rs 6,000 crore of land held by Sumer Group in Radius joint venture over non-payment of Rs 479 crore loan. But the stock shed early gains and closed 0.78 per cent higher at Rs 51.80 apiece.
Meanwhile, Asian markets saw an extension of last week’s positive momentum as equities continue to see good follow up buying. Japanese markets were closed for a public holiday.
South Korean Kospi rose by 1.16 per cent while Shanghai Composite index moved by 0.5 per cent and Hong Kong’s Hang Seng index by 0.23 per cent.
Reports said US President Donald Trump and Chinese President Xi Jinping are set to participate in the Asia Pacific Economic Cooperation (APEC) meetings in Chile during mid-November where a partial trade deal could be signed.