Infosys surges on heavy volumes

In past two trading sessions, the stock has rallied 9% compared to 1% rise in benchmark index.

Infosys has surged 5% to Rs 3,215, its highest single day gain since July 12, 2013, on back of heavy volumes on the bourses.

The stock opened at Rs 3,105 and touched a high of Rs 3,257 on the National Stock Exchange (NSE). At 1050 hours, a combined around 1.6 million shares already changed hands on the counter against an average around 2 million shares that were traded daily in past two weeks on NSE and BSE.

Shares in Infosys, the country's second biggest information technology company, have outperformed the market by surging 9% in past two trading sessions against 1% rise in benchmark CNX Nifty.

According to media report Infosys has sent legal notices to three Indian newspapers seeking damages of Rs 2,000 crore each alleging some of their articles defamed the company.

Meanwhile, according to Economic Times news report, former SAP board member Mr Vishal Sikka is all but certain to be chosen as the new Chief Executive Officer (CEO) of Infosys.

The appointment of Sikka who resigned from the German business software maker is likely to be announced within the next few weeks.

Shashi Bhusan, analyst at Prabhudas Lilladher has recommended ‘buy’ rating on the stock with a target price of Rs 3,920.

Infosys, if appoints Sikka as CEO, will be sending a strong signal to the market about their aspiration to be a global technology major and not just an Outsourcing vendor, analyst said in a report dated June 2, 2014.

However, if that happens, there are possibilities of few more exits in the company.  We  believe  the evolution  of  recent  technological  trends  definitely  mandate  Indian  IT Outsourcing vendors to take a lead in innovation. But, the transition is going to be a bumpy ride for Infosys, added analyst.

Meanwhile, the 33rd Annual General Meeting (AGM) of the Infosys will be held on Saturday, June 14, 2014.