MUMBAI (Reuters) – Shares of India’s Infosys Ltd fell as much as 4.6 percent 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.
Shares slumped 9.6 percent 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 percent, hitting their lowest since September 2014.
Reporting by Rafael Nam; Editing by Sherry Jacob-Phillips