Infosys down as investors fret over U.S. scrutiny
Reuters Market Eye - Shares in Infosys(INFY.NS), India's No. 2 software services company, fell over 3 percent on news that the company is under scrutiny from U.S. authorities for likely errors in employer eligibility documents of its staff.
"We believe that if the DHS concludes that there has been a systematic policy of misuse/violation of visas, there could be penalties or other strictures that could be imposed," Nomura said in a note, referring to the U.S. Department of Homeland Security.
(To read Infosys staff documents under U.S. scrutiny, click here)
The new development will add to concerns as the company will go on trial in August for alleged visa misuse and the current development may strengthen the case, Nomura said.
It also comes on the back of disappointing earnings on April 13, where the company disappointed investors with a weaker-than-expected revenue growth outlook for the current fiscal year.
Infosys, in a statement, said that any government action could materially and adversely affect its business and results of operations.
"We believe this is a negative development," Nomura added.
(Reporting by Manoj Dharra; Editing by Subhadip Sircar)
- Tweet this
- Share this
- Digg this
- China's Xiaomi hopes Mi 4 smartphone can take on Apple
- Rebels likely downed Malaysian jet 'by mistake' - U.S. officials
- Nifty hits record high on foreign buying, higher Asian stocks
- Jet Airways chairman says looking to restructure debts, talking to bankers
- Italy gives Google 18 months to change data use practices
The Nifty rose to a record high on Wednesday, led by gains in blue-chips such as ICICI Bank on continued foreign-investor buying, while higher Asian shares also helped sentiment. Full Article
Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs Full Article
Jet Airways chairman says looking to restructure debts, talking to bankers Full Article
Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec Full Article
Supreme Court could allow Sahara boss to conduct asset sale talks, company says. Full Article
Five held in China food scandal probe, including head of Shanghai Husi Food Full Article