BSE IT index slips post Sikka resignation but TCS, Tech Mahindra rise

NEW DELHI: Most of the IT companies were trading in red in morning trade on Friday after resignation of Infosys CEO and MD Vishal Sikka with immediate effect.

The BSE IT index was down over 2 per cent with Infosys falling over 7 per cent at around 11.35 am (IST).

Infosys’ board appointed UB Pravin Rao (COO) as interim CEO & MD. Sikka will stay as Executive Vice Chairman to ensure a transition until a permanent CEO is identified.

"We think that investors will keenly watch out for the appointment of the new permanent CEO and his/her vision to accelerate the company's growth," stated Macquarie in a report.

Other IT companies such as Mindtree and Intellect were also trading in negative zone.

On the other hand, Tech Mahindra, Tata Consultancy Services (TCS) and HCL Tech were up over 1 per cent each.

Overall market sentiment was also under pressure following weak global cues.

The BSE Sensex was down 250 points, or 0.79 per cent, at 31,545, while NSE Nifty index was down 62.15 points, or 0.63 per cent, at 9,842.