The IT Index fell below 20-DMA and 200-DMA but found support from other IT stocks. Other IT stocks are marginally in the red as the problem is company specific and not a sectoral one.
Srinivas was leading the largest portfolio at Infosys and was considered among the frontrunners to become the next CEO.
"Infosys" inability to retain core talent/attract new talent is worrying. Leadership vacuum due to recent exits could impact business and undermine investor confidence. Turnaround efforts need stability to succeed. Business and stock performance could suffer, despite undemanding valuations, due to uncertainties at the top," said Kotak Institutional Equities report.
At 09:45 a.m.; the BSE IT Index was down 2.40 per cent against 0.33 per cent decline on the Sensex.
Infosys fell nearly 7.5 per cent in early trade but pared some of the intraday losses.
Among the BSE IT Index, Infosys was down 6.02 per cent, Tata Consultancy Services was 0.06 per cent lower, HCL Technologies declined 0.24 per cent, Wipro slipped 0.44 per cent, Tech Mahindra was 0.11 per cent lower and Oracle Financial Services Software slipped 0.12 per cent.
According to Prabhudas Lilladher report, Infosys is nearing the end of the restructuring process that started a year ago. Hence, the near term weakness should be used as a buying opportunity.
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