Experts on the back of Nandan Nilekani again joining Infosys as Non-e executive Chairman on Thursday expect the erstwhile underperformer in trade to open with gains on Monday. The stock depleted in value by as much as 10% on a year to date basis and now the worst seems to be over for the IT bellwether.
Soon after joining at the helm of the company, Nilekani attended a conference call with shareholders and committed to focus primarily on bringing stability to the company and avoid any discordant course at the country's second largest IT giant.
Brokerage firm, HDFC securities said to a leading business site that "Infosys has got the right man. He had steered Infosys to new highs when Murthy handed over the baton to him and headed the largest Social project in the world - Aadhaar . What more can one ask for".
"The bearish stance of the stock has gone now. The stock should easily open 7-10 percent higher on Monday. The biggest risk is that if it is proven later that someone in Infosys benefitted from the Panaya acquisition, the law firms in the US could sue Infosys which could be detrimental to the interest of the shareholders," he said.
In an interview to the news channel, Nandan said that his prime duty is now to appoint the CEO of the company. At the same time, he thanked and acknowledged all the board members who have resigned from the board.
Furthermore, Nilekani said that he represents 100% of the company's shareholders.
The stock which declined to multi-year lows has again regained on the positive news of Nilekani again taking over the charge of Infosys. Also, the stock has again made it to the list of 10 most valued scrips on the BSE and NSE.
Another brokerage being positive on the stock said, ""The stock should react positively on Monday. However, we believe this is just a short-term relief. The sector including Infosys continues to remain under pressure due to structural issues and uncertainty in client decisions," Nitasha Shankar, Senior Vice President and Head of Research, YES Securities.