Infosys stock gains over 4%
On a lacklustre trading day when the BSE benchmark index Sensex as a whole fell 150 points, software services company Infosys stock was in the limelight, rallying almost 9 per cent from its previous close last Friday, in response to co-founder N R Narayana Murthy's return to the company's helm.
The share had closed at Rs 2,407.60 last Friday on the BSE. It opened at Rs 2,524.80 on Monday, the first trading day after the announcement of Murthy's comeback as Executive Chairman last Saturday. It touched an intra-day high of Rs 2,624.90, almost 9 per cent higher than Friday's closing price and finally closed at Rs 2,513.95, a gain of 4.42 per cent.
On NSE, the stock closed up 4.25 per cent at Rs 2,514.10 on Monday with trading volumes crossing 4 million shares. In fact, trading volumes of the stock on the both exchanges was uniformly high; 4.90 lakh Infosys shares were traded on the BSE on Monday. The company's market capitalisation, based on Monday's closing price was Rs 1,44,360 crore, though less than Rs 1,65,617 crore as on March 31, 2013. Its price-to-earnings ratio on Monday was at 15.84 against the industry average of 18.06. Earnings per share of Rs 158.75.
Fund managers said that the return of Murthy at the helm of Infosys augurs well for renewed investor interest in the company in the hope of better capital appreciation.
MD & CEO of IDBI Asset Management that manages IDBI Mutual Fund, Debasish Mallick said, “In the past two years, shareholders were indifferent to Infosys. Murthy's comeback has now triggered hopes of good days. The stock will now be on the radar of investors, both retail and institutional.” IDBI Nifty Index Fund has exposure to Infosys stock.