Infosys share price post whistleblower probe: What you you should do now
Infosys share price fell over oneper cent in early morning trade on November 11 amid reports that the company is looking to wrap up the whistleblower probe. The shares of the IT behemoth was trading at Rs 705.90, down 0.36 percent on BSE.
Infosys share price fell over oneper cent in early morning trade on November 11 amid reports that the company is looking to wrap up the whistleblower probe. The shares of the IT behemoth was trading at Rs 705.90, down 0.36 percent on BSE. While, earlier Infosys share price slipped over 16 per cent in just three trading days from Rs 768 to Rs 635 after an anonymous whistleblower group's allegation against the company’s current management for using unethical practices for spurring revenue and profits. However the experts so far have been bullish on the stock, marking this correction as purely out of news and the company still being in a strong business.
V.K Sharma, HDFC Securities told Zee Business, ''When the shares of Infosys fell about 16%, we recommended to buy the scrip as it was purely due to the whistleblower case. At present, if you have a long term vision than you should definitely invest in Infosys. It is ideal to buy such a stock when it corrects after negative news. The chairman of SEBI had rightly said that as an investor you must trust the management of the company, as this was the only management which has set the standards for good corporate governance. Though the clear picture will come only after the investigation by the concerned authorities, but I believe the stock is already priced-in and it would not see a drastic correction from here.''
Infosys Chairman Nandan Nilekani earlier said that these speculations are appalling and seem to be aimed at tarnishing the image of some of the most accomplished and respected individuals. ''I have a deep regard for the life-long contribution of all our co-founders. They have built this institution and have served this company selflessly and even today, remain committed to the long-term success of Infosys'', he added.
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Infosys had highlighted high standards of corporate governance in the company and stated that the process followed by the company in this particular case was in-line with its Whistleblower policies. On not disclosing, Infosys stated that it wanted to do a thorough investigation before making any disclosures. The chairman remained appreciative of the management.