Investors on Monday gave a thumbs-up to the appointment of Salil Parekh as the CEO and managing director of Infosys with the share price of the country’s second-largest IT services company gaining almost three per cent on the bourses.
The shares opened on a positive note at Rs 983 on the BSE and hit a day’s high of Rs 996.95, a rise of over 4 per cent. The stock, however, shed some of its gains and ended at Rs 985.30, up 2.80 per cent.
On the NSE, the stock closed at Rs 984.40, up 2.67 per cent.
Analysts said the appointment puts an end to the uncertainty over succession since the resignation of Vishal Sikka in August.
“The CEO’s appointment is faster than our expectation and reduces the uncertainty on succession planning at Infosys,” Nomura said in a note.
“The new CEO has a strong technology background and rich IT services experience. Parekh looks like a sensible choice for the job,” said Sarabjit Kour Nangra of Angel Broking.