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Infosys shares surge 9% as Murthy returns as chairman

Reuters  Mumbai, June 03, 2013
First Published: 09:30 IST(3/6/2013) | Last Updated: 13:09 IST(3/6/2013)

Infosys' scrip on Monday soared by 9% in morning trade as the IT major recalled its founder NR Narayana Murthy and returned control of the company.


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After making a strong opening, shares of Infosys further jumped 9% to Rs. 2,624.90 on the BSE.

At the NSE, the stock shot-up by 8.84% to Rs. 2,625.

The bellwether scrip was the top gainer on both Sensex and Nifty during the morning trade.

Later, the scrip pared some of the gains and was trading at Rs. 2,508.40, up 4.19% in late Monday morning trade.

"The move is aimed to strengthen the leadership and put the company back on high growth path. We believe the move is positive for the company," said Ankita Somani, Research Analyst, IT, Angel Broking.

Struggling IT major Infosys had on Saturday recalled its founder NR Narayana Murthy and returned control of the company. The performance has disappointed investors due to poor earnings in the last nine quarters and losing ground to smaller rivals.

Murthy, who had shed executive role seven years ago and finally retired as head of Infosys in August 2011, has been appointed executive chairman, replacing KV Kamath during whose tenure the company shares slumped 15%.

Billionaire Murthy accepted a five-year term, over which period he will earn a salary of one-rupee per year and will have his son, Rohan, as his executive assistant.


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