Infosys shares extend losses after CEO Vishal Sikka quit

Nomura downgraded the stock to “reduce”, saying the uncertainty over Infosys’ management could hamper long-term growth.

Shares of India’s Infosys Ltd fell as much as 4.6% on Monday to a near three-year low, slumping for a second consecutive session, after brokerages including Nomura downgraded the stock following the resignation of its chief executive.

he concerns about Infosys’ future trumped the company’s approval on Saturday of a 130 billion rupees ($2.03 billion) share buyback. (Reuters File Photo)

Shares slumped 9.6% on Friday after CEO Vishal Sikka unexpectedly resigned after a long-running feud with the company’s founders, wiping out $3.45 billion off Infosys’ market value.

Nomura downgraded the stock to “reduce”, saying the uncertainty over Infosys’ management could hamper long-term growth, while expressing worries that the tussle between the founder and promoters could escalate.

The concerns about Infosys’ future trumped the company’s approval on Saturday of a 130 billion rupees ($2.03 billion) share buyback.

As of 0421 GMT, Infosys shares were down 2.5%, hitting their lowest since September 2014.