Infosys shares jumped as much as 9 per cent on Monday after leading brokerages said the return of former chairman N.R. Narayana Murthy as executive chairman is a big positive for India's second largest outsourcer.
The stock traded 5.4 per cent higher at Rs 2,537 as of 10.46 a.m. after hitting a high of Rs 2,624.90. Infosys was the top gainer on the 50-share Nifty benchmark.
Infosys shares jumped as much as 9 per cent on Monday after leading brokerages said the return of former chairman N.R. Narayana Murthy as executive chairman is a big positive for India's second largest outsourcer.
The stock traded 5.4 per cent higher at Rs 2,537 as of 10.46 a.m. after hitting a high of Rs 2,624.90. Infosys was the top gainer on the 50-share Nifty benchmark.
Morgan Stanley said the return of Mr Murthy is a driver for Infosys's stock price in near term. Morgan Stanley has a target of Rs 2,890 on Infosys. (Read: Why are brokerages bullish on Infosys)
Two other investment banks said Mr Murthy's return augurs well for the stock.
Bank of America Merrill Lynch has upgraded Infosys to "buy," raising its target price to Rs 2,850, while CLSA retained its "buy" call with a target of Rs 2,605 on Infosys shares.
Infosys, for years an investor favourite for exceeding its earnings targets, has struggled in the past two years as big customers in the United States and Europe cut costs and rivals such as Tata Consultancy Services and HCL Tech take away market share.
Its troubles have spurred criticism of everything from its pricing strategy, to what is seen as an insular and risk-averse culture, to its method of choosing CEOs.
Shares in Infosys have gained 8.4 per cent since S.D. Shibulal took over as chief executive in August, 2011, lagging the 28 per cent gain in the BSE IT benchmark. (Track stock)
(With inputs from Reuters)
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