Vishal Sikka's tenure as CEO and MD of Infosys may have seen an unexpected end today marking a likely close to the long chapter of bickering between the founder members and the management but the firm's stock under the former chief technology officer of SAP outclassed its rivals during the last three years.
Sikka joined Infosys on August 1 2014 and since then till the market closing yesterday, the stock surged over 22% outstripping its rivals Tata Consultancy Services Ltd (down 1.44%), Wipro (up 7.79%) and HCL Technologies (up 14.51%).
During this period, the benchmark Sensex gained over 24%.
On August 1, 2014, the Infosys stock closed at 835.09 level and closed at 1,021 level yesterday.
Its main rival Tata Consultancy Services (TCS) closed at 2516.45 level on August 1 2014 and ended at 2480.15 points on the BSE on Thursday.
Bengaluru-based Wipro closed at 288.80 level on BSE yesterday against a close of 267.92 on August 1, 2014.
HCL Technologies gained nearly 15 percent, rising to 867.75 level from the close of 757.78 on August 1, 2014.
Meanwhile, the Sensex closed at 31,795 level on Thursday, logging over 24 percent rise from the August 1, 2014 close of 25,480 points.
The Infosys stock story looked rosy until Sikka put in his papers today morning. The Bengaluru-based firm sent a release to the exchanges informing them about the crucial development at around 9:09 am before the market opened.
After news of his resignation poured in, the Infosys stock came under intense pressure, falling up to 13 percent intraday.
Investors lost nearly Rs 10,000 crore in market capitalisation during trade today. It closed 9.60 percent or 98.05 points lower today at 923.10 level on the BSE.
The stock is down 8.69 percent or 87.9 points on an year-to-date basis now compared to 1 percent or 10 points movement based on yesterday's closing price.
On an yearly basis, the stock is down 13.08 percent or 138.9 points.
The stock closed at four-month high on Thursday a day after the Bengaluru-based firm said it would consider a proposal for buyback of its equity shares at its meeting to be held on August 19 or tomorrow.
It was the top gainer on Nifty 50 and the 30-stock Sensex.
A share buyback is repurchase of a company's outstanding shares that reduces the number of shares in the open market. The buyback is carried out usually at a premium compared with a current market price at that point.
Brokerages are likely to assign new ratings to the stock post the key development today and the possible buyback announcement tomorrow which has proved to be a boon for the stock of the IT company till date.