Infosys has been in news throughout this week from Vishal Sikka putting papers to Narayana Murthy holding a conference call and now clamour for Nandan Nilekani to return to Infosys is just getting louder.
Infosys co-founder Nandan Nilekani is likely to return as the head of the IT bellwether, sources told CNBC-TV18. Clarity on Nilekani’s role is expected in the next 48 hours, they said.
Reacting to the news, shares of Infosys rose nearly 3 percent in intraday trade. The stock recorded bearish candle in 3 straight days and now some positive cues could take the stock higher.
The Moving average convergence divergence (MACD) is a trend-following momentum indicator has already given a ‘SELL’ signal while the Supertrend indicator gave a ‘SELL’ signal.
We have collated views from different experts various experts on Infosys:
Prakash Diwan of Altamount Capital Management told CNBC-TV18
Appointment of Nandan Nilekani will bring in stability which is badly required for large companies like Infosys. But, it will not change the environment. The IT environment is completely different to what it was when Mr. Nilekani was on board.
It will help Infosys to ride this period comfortable something what Tata’s did by putting in N Chandra, who is an insider, at the helm of things.
For the stock, it might be a great buy at Rs 870 but institutions will now wait for some more time before any positive news will come along. There will be a lot of buying that could come in given the fact that there would be huge arbitrage in the buyback.
Ashwani Gujral of ashwanigujral.com told CNBC-TV18
I don’t level of Rs900 and Rs920 will get crossed very easily even if Nilekani comes at the helm of things. So, may be people might just go short in this rally, because things take time in turning around.
He has to come in and sort out the mess. When he was the CEO everything was on an upswing but now it is a collapsing industry. So, let’s see what he can do.
Sanjeev Jain, AVP - Equity Research at Ashika Stock Broking Ltd
If Mr Nilekani joins Infosys it will be a big positive for the company. Not to forget, Nilekani was one of the seven founders. The market has welcomed the news of Nilekani joining which is now clearly getting reflected in the stock price.
Former CFO V Balakrishnan told CNBC-TV18
Bringing Nilekani back will be good for Infosys. "I don’t know whether any concrete talks have happened with Nandan Nilekani. It's still speculation. We don't know if he wants to come back (Nilekani). If he does, he should be made chairman Of Infosys.
Seshasayee & Ravi Venkatesan should quit as they have let down shareholders. The board needs to be restructured to make any further movement.
Kunal Saraogi, CEO at Equityrush.com
Markets are abuzz with expectations of Nandan Nilekeni taking on the mantle at Infosys. I believe this should augur well for Infosys given that Nilekeni has the requisite heft and standing to calm and reassure investors and help the company and its employees get over the events of the last few weeks.
Chartwise, Infosys stock remains firmly an avoid for an investor and can be sold short by traders given its weak chart structure and the fact that the stock trades below its most important support at 920.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
