Infosys shares drop 4% amid US scrutiny on employer eligibility

MUMBAI: Shares of Infosys today slumped by about 4 per cent, wiping off over Rs 5,400 crore in investor wealth, on concerns that the IT major may face further heat with the US Department of Homeland Security (DHS) reviewing its employer eligibility.

After shedding over 4 per cent during the day, the heavyweight stock finally ended the trade at Rs 2,311.95, down 3.92 per cent on the BSE.

Similarly at the NSE, Infosys closed 4.18 per cent lower at Rs 2,306.80.

"Infosys witnessed selling pressure on reports of US security on it visa issue," Shanu Goel Research Analyst Bonanza Portfolio said.

In the process, the market value of Infosys dropped by Rs 5,415 crore to Rs 1,32,759 crore.

On the volume front, 3.94 lakh shares of the company were traded on the BSE, while over 22 lakh shares changed hands on the NSE.

Infosys was the biggest drag on the Sensex, contributing 55 index points on the downside.

The BSE benchmark index Sensex ended the day 277.16 points down at 17,096.68.

In a recent Securities and Exchange Commission filing, the company had said DHS is reviewing its employer eligibility verifications, after it found "significant percentage" of errors in Forms I-9 of some of its employees working in the country."

Form I-9 is used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the US and every employee hired has to complete an I-9 form at the time of hire.