Sikka's exit: Infy records sharpest fall since Apr 2013, ends 9.6% lower

The stock has erased its entire Thursday's 4.5% gain post the development.

Infosys ended 9.6% lower, recording its sharpest decline since April 12, 2013 on closing levels. The stock hit 52-week low of Rs 884, down as much as 13.4% in intraday trade after Vishal Sikka resigned as the Managing Director (MD) and Chief Executive Officer (CEO) of the company with immediate effect.

“The board of directors of Infosys has at its meeting today accepted the resignation of Dr. Vishal Sikka as the Managing Director and Chief Executive Officer of the Company with immediate effect,” Infosys said in a statement.

Vishal Sikka has now been appointed as the Executive Vice-Chairman of Infosys. The company has appointed U B Pravin Rao as the Interim-MD and CEO, it added.

Infosys said the succession plan for appointment of a new MD and CEO has been operationalised by the board and a search for the same has been commenced.

Meanwhile, the Board is also likely to consider a proposal for buyback of its equity shares on Saturday.

On June 12, 2014, Infosys, India's second biggest IT outsourcer named Vishal Sikka as the CEO & MD of the company. He took over as CEO & MD from S D Shibulal on August 1, 2014.

Infosys posted second highest turnover –  Infosys was the most traded counter on the National Stock Exchange (NSE) and BSE with the cumulative turnover of Rs 8,414 crore on Friday. A combined 90.34 million equity shares representing 3.9% of total equity of the company changed hands today.

Earlier, on December 8, 2014, Infosys had recorded a combined turnover of Rs 8,711 crore.

Even after taking into account today's fall, the stock of Infosys has outperformed the IT index by gaining 16% since Vishal Sikka was appointed as CEO & MD of the company. The S&P BSE IT index and Nifty IT index added 14% and 12%, respectively, during the same period.

Company	11/06/2014	17/08/2017	% chg	18/08/2017	% chg*
Infosys	794.69	1021.15	28.50	923.10	-9.6
HCL Technologies	701.80	867.75	23.65	876.20	1.0
TCS	2205.25	2480.15	12.47	2512.85	1.3
Wipro	263.48	288.80	9.61	288.20	-0.2
Tech Mahindra	504.70	424.40	-15.91	427.55	0.7
S&P BSE Sensex	25473.89	31795.46	24.82	31524.68	-0.9
S&P BSE IT Index	8862.48	10451.08	17.93	10081.89	-3.5
Nifty 50	7626.85	9904.15	29.86	9837.40	-0.7
Nifty IT index	9436.40	10797.80	14.43	10570.00	-2.1
Price on BSE in Rs
*% change over August 17, 2017