Infosys shares came under heavy pressure on Tuesday on whistleblower complaints alleging that CEO Salil Parekh and CFO Nilanjan Roy were involved in unethical practices for many quarters. The complainants, a group of anonymous employees, also alleged that Parekh was bypassing reviews and approvals for large deals.
Intraday, the stock fell as much as 15.99 percent to Rs 645 per share. At 11.27 AM, Infosys shares traded 14.66 percent lower at Rs 655.30 per share, compared to a 0.15 percent fall in the Nifty50 at 11,643.80.
In response to the complaints, chairman Nandan Nilekani issued a statement saying that the company's audit committee will conduct an independent investigation on the same.
Most brokerages, however, said the allegations could lead to a lot of potential uncertainty for the company and could keep the stock under pressure for the near-term.
Here's what the market experts are recommending on the stock after the whistleblower complaint:
Infosys is not a trading opportunity now, said Sukhani. “Once the stock goes into the news, then I don’t like to trade it. So for me, Infosys is not a trading opportunity. Once it stops doing whatever it is going to do today, then only we will consider it."
Sameet Chavan of Angel Broking: "Infosys which has seen a massive gap down today... we would expect Infosys to consolidate in a range of Rs 640-Rs 630 on the lower side. On the higher side now, Rs 690 to Rs 720 would act as a strong resistance, so one should avoid Infosys. Any kind of bottom fishing should be avoided at least with the trading view."
Mitessh Thakkar of mitesshthakkar.com: "Today could be a very choppy day for Infosys stock, so, to be honest, I am not considering a buying point... buying is not an option right now because this kind of fall will require a lot of base building before a reversal happens. I think the target which I would look for is not far away from the day’s low, Rs 625 was an important pivot on the long term charts, so maybe around those level stability will come in but I am not sure we will see an immediate reversal happening over here. The idea should be to possibly try and accumulate at lower levels around Rs 620-625 and wait for a reversal."