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Rediff.com  » Business » Infosys shares end up 4% as Murthy returns as chairman

Infosys shares end up 4% as Murthy returns as chairman

Last updated on: June 03, 2013 17:34 IST

InfosysInfosys' scrip on Monday soared by 9 per cent in morning trade as the IT major recalled its founder N R Narayana Murthy and returned control of the company.

After making a strong opening, shares of Infosys further jumped 9 per cent to Rs 2,624.90 on the BSE.

At the NSE, the stock shot-up by 8.84 per cent to Rs 2,625.

The stock closed 4.4 per cent up.

The bellwether scrip was the top gainer on both Sensex and Nifty during the morning trade.

Later, the scrip pared some of the gains and was trading at Rs 2,508.40, up 4.19 per cent in late morning trade.

"The move is aimed to strengthen the leadership and put the company back on high growth path. We believe the move is positive for the company," said Ankita Somani, Research Analyst -- IT, Angel Broking.

Struggling IT major Infosys had on Saturday recalled its founder N R Narayana Murthy and returned control of the company.

The performance has disappointed investors due to poor earnings in the last nine quarters and losing ground to smaller rivals.

Murthy, who had shed executive role seven years ago and finally retired as head of Infosys in August 2011, has been appointed Executive Chairman, replacing K V Kamath during whose tenure the company shares slumped 15 per cent.

Billionaire Murthy accepted a five-year term, over which period he will earn a salary of one-rupee per year and will have his son, Rohan, as his executive assistant.

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