Infosys share crashes 16% on Sensex, Nifty amid allegations of 'unethical' practices
Infosys share only saw sell orders and no buy orders on the BSE and NSE.
Infosys share price opened 10% lower on BSE and NSE today as the IT firm faced allegations of indulging in 'unethical' practices to generate more profit and revenue from an anonymous employee group, named 'Ethical Employees'. Infosys share price was stuck in the lower circuit of 10%, losing 76 points to Rs 691 level compared to the previous close of Rs 767.75 on BSE.
On Nifty, the stock of the IT major crashed 10% to Rs 691 level against the previous close of Rs 767.85. Infosys investors lost Rs 44,383 crore in market wealth today with the stock's market capitalisation sinking to Rs 2,82,656 crore on BSE compared to Friday's close of Rs 3,26,939 crore.
The large cap stock only saw sell orders and no buy orders on the BSE and NSE. It was the top loser on both Sensex and Nifty today.
Later, the stock fell up to 16% after lower circuit limit was revised to 20% on intense selling pressure. On BSE, the stock lost 16% to Rs 649.35. On NSE too, the share fell 16% to Rs 645.
Reacting to the negative sentiment around the stock, US-listed shares of Infosys plummeted nearly 16% in premarket trading on Monday.
Continuing its pre-morning trends, Infosys ADR opened 15.5 per cent lower at $8.94 and was moving near to its 52-week low level of $8.85.Also read: Allegations employees made against Infosys' Salil Parekh, Nilanjan Roy
Indian markets were closed on Monday for assembly election in Maharashtra. On Friday, Infosys share price closed 0.18% or 1.35 points lower at Rs 767.75.
In a complaint letter to the board of Infosys and the US Securities and Exchange Commission (SEC) on July 20, the group has claimed that the company asked them not to "fully recognise costs like visa costs" in last quarter to earn more profit.
It added that when the auditor pointed it out, the issue was postponed by the company. The group said they were prevented from sharing data on large deals and important financial measures during board meetings.Also read: Whistleblower letter alleges accounting irregularities in Infosys
"CEO and CFO are asking us to show more profits in treasury by taking up risks and make a change to policies. This will provide short-term profits," the group alleged.
Meanwhile, Infosys in a statement said it's investigating the charges. "The whistleblower complaint has been placed before the Audit Committee as per the company's practice and will be dealt with in accordance with the company's whistleblowers' policy," the IT firm said.
By Aseem Thapliyal
Infosys today elaborated on the details of the whistleblower complaint and measures being taken in view of the same, in
Indian equities were little changed on Tuesday amid a fall in shares of Infosys Ltd. Traders exercised caution, awaiting fresh cues on the potential trade deal between the US and China. At 9.20am, the benchmark Sensex
Infosys share only saw sell orders and no buy orders on the BSE and NSE. Infosys share price opened 10% lower on BSE and NSE today as the IT firm faces allegations of indulging in
Opening Bell: Sensex, Nifty Open Lower Indian equity indices fluctuated between gains and losses in the opening trade. The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 39,317 and 11,683 respectively. The
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