Indian shares fell on Friday led by Infosys Ltd that plunged after the resignation of Chief Executive Vishal Sikka heightened uncertainty about the IT services provider's future. However, the BSE and NSE indexes still posted their biggest weekly gain in five.
The benchmark BSE index closed down 0.85 percent at 31,524.68, but gained nearly 1 percent in the week. The broader NSE index ended 0.67 percent lower at 9,837.40, but rose 1.3 percent for the week. Infosys shares closed down 9.6 percent, their biggest daily fall in more than four years.
Sikka resigned as chief executive and managing director of Infosys with immediate effect and the country's no.2 IT services company named U.B. Pravin Rao as his interim replacement. Infosys shares fell as much 9.4 percent to their lowest since June 28, on way to their steepest intraday percentage loss since April 2013.
Sentiment was also hit as Asian shares joined a global retreat from riskier assets on rising doubts about US President Donald Trump's ability to deliver his economic agenda. But Indian indexes were still headed for their sixth weekly gain in seven, though they remain below the record highs hit on August 2.
"There is some dip because of Infosys. Market is under pressure, the uptrend which was there since December is under pressure," said Anupam Singhi, chief operations officer, Marketsmith India, part of William O'Neil India. Drug makers, which have significant exports to the United States, also dropped, with the Nifty Pharma index falling as much as 1.7 percent. But Infosys' rivals gained, with Tech Mahindra and Tata Consultancy Services rising over 2.5 percent each. Bank shares were also big drag on the indexes.
Comments
Comments are closed.