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TMCNet:  Infosys scrip surges to 52-week high [Software & Services] [Times of India]

[December 30, 2013]

Infosys scrip surges to 52-week high [Software & Services] [Times of India]

(Times of India Via Acquire Media NewsEdge) BANGALORE: IT bellwether Infosys saw its share price hit a 52-week high of Rs 3,570 in intra-day trade on Friday, while the benchmark Sensex jumped 119 points to end the week on a near three-week high of 21,193.58.

Though Infosys share ended the day at Rs 3,565, up 1.41% over the previous day's close, its value has surged by 56% in one year. On December 27 last year, Infy share was trading at Rs 2,286.85.

Infosys stock has been bullish in recent weeks even as the company has seen eight high-profile exists in seven months from its senior leadership team. Just last week, V Balakrishnan former CFO and board member quit, following which the company's share price dipped by 2% in trade.

However, investors buying into Infy stocks seem to be unfazed by the exists given that the company is very much under the reins of its iconic founder N R Narayana Murthy, currently the executive chairman. Murthy's second innings at India's second largest IT firm along with son Rohan Murty as his executive assistant is for a period of five years.

In fact, the company's share price and market value have gained 50% and Rs 65,704 crore respectively since Murthy returned to the helm of affairs in June this year. The Murthy family hold around 4.47% stake in the company, valued at approximately $1.5 billion.

In a recent interaction with brokerage house Cowen & Co, Murthy said, "In most cases, management was successfully able to keep promising senior talent which was about to leave Infosys. On the other hand, management voluntarily decided to let less promising talent depart." Quoting Murthy the report added that in certain cases other less promising senior talent in Infosys had delayed the advancement of more promising talent within the organization.

Overall, the $108 billion Indian IT-ITes industry has seen an uptick in demand in its largest market US. During the last two quarters of the current fiscal India's blue-chip software services companies posted strong earnings indicating renewed confidence among clients and a healthy surge in outsourcing demand.

Besides, IT stocks have been on an upswing following a weak rupee, which on Friday ended the day at Rs 61.85 to the dollar.

Analysts tracking the markets said that a fall in rupee is seen as a positive for export-focused sectors such as the Indian IT industry. IT companies like Infosys benefit from a weak rupee, as it positively impacts their profit margins.

(c) 2013 Bennett, Coleman & Company Limited

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