Infosys saga: What markets want to hear in NRN Murthy's investor call
STOCK MARKET - The public spat between the Board and Narayana Murthy, one of the co-founders of Infosys, has taken a heavy toll on not only the stock, but its public image as well. In a latest, Infosys co-founder N R Narayana Murthy planned to to reach out to investors on Wednesday evening to explain his stand on the developments. However, the call has now been rescheduled to August 29.
Between August 18 when Vishal Sikka, its managing director (MD) and chief executive (CEO) tendered his resignation, Infosys has slipped over 14% to 877 levels Rs till close of trade on Tuesday and eroded nearly Rs 33,000 crore in investor wealth as measured by market capitalisation (market-cap), ACE Equity data show. Analysts say investors have been already incrementally negative on Infosys given the dispute between promoters and the board, and Vishal Sikka's sudden exit last week has further fueled their concerns. “We consider this event would be further taken negatively. We believe other than an imminent buyback there might not be any major triggers to look forward to over the next two quarters. We expect a de-rating of the stock, and downgrade to ‘reduce’ with the target price cut to Rs 875 from Rs 1000,” point out Ashwin Mehta and Rishit Parikh of Nomura in a report.
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