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
- Thousands raised to buy car for Pennsylvania sniper's lookalike
- WHO vaccines boss signs up as Ebola trial guinea pig
- UPDATE 4-P&G to exit Duracell battery business; quarterly sales dip
- Two U.S. states to quarantine health workers returning from Ebola zones |
- UPDATE 10-Two U.S. states to quarantine health workers returning from Ebola zones
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article