Bloomberg
Published Oct 22, 2019 12:40
Updated Oct 22, 2019 15:53
Infosys Drags India Stocks Lower After Whistle-Blower Complaint
(Bloomberg) -- Infosys Ltd. (NS:INFY) dragged India stocks lower after an anonymous whistle-blower complaint alleged the software exporter used irregular practices to shore up profits.
The S&P BSE Sensex declined 0.3% to 39,186.62 as of 10:04 a.m. in Mumbai. The NSE Nifty 50 Index rose 0.1%. Infosys sank as much as 16%, weighing the most on both gauges and offsetting post-earning gains in HDFC Bank Ltd . (NS:HDBK) and Reliance Industries Ltd. (NS:RELI).
Infosys Ltd. plunged after a letter addressed to company’s board and published by the Deccan Herald newspaper charged the company Chief Executive Officer Salil Parekh of “unethical practices” in recent quarters to boost “short term revenues and profits.”
The company, to ensure independence in investigations, has recused the company’s CEO and CFO from the matter, Infosys Chairman Nandan Nilekani said in a statement to stock exchanges.
Of the 10 Nifty companies that have announced results so far, six have either met or exceeded analyst estimates. Today, private sector lenders Axis Bank and Kotak Mahindra Bank are scheduled to announce results.
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Written By: Bloomberg
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