October 22, 2019 / 5:19 AM / 24 days ago

Indian shares wobble; Infosys tanks after whistleblower complaint

* NSE index down 0.02%, BSE index 0.21% lower

* Infosys plunges to near 11-month low

By Chandini Monnappa

Oct 22 (Reuters) - Indian shares were flat in choppy trade on Tuesday, as markets resumed trading after a three-day weekend, with Infosys tumbling after the company said it was investigating allegations made against its top executive.

Infosys shares dropped 13%, the most on the NSE index, as country’s No. 2 software services firm received a complaint alleging “unethical practices” by Chief Executive Officer Salil Parekh.

The company’s stock slid as much as 16%, its worst session in over six-and-a-half years, and weighed on the country’s IT index which fell as much as 4.11% to hit its lowest level in over four weeks.

Indian financial markets were closed on Monday for elections in the western state of Maharashtra. The broader NSE index was down 0.02% at 11,661.50 by 0426 GMT on Tuesday, while the benchmark BSE index was 0.21% lower at 39,215.48.

“Investors are taken aback by governance issues at one of the most respected companies,” said Deepak Jasani, head of retail research at HDFC Securities.

“Results over the last two days have been in-line or slightly better than expected, this has saved the index from falling further.”

A clutch of upbeat quarterly reports were a bright spot in markets.

HDFC Bank Ltd’s shares rose 1.46% after the company on Saturday posted a 27% jump in quarterly profit, and the NSE bank index was up 1.01%.

Axis Bank Ltd was trading nearly half a percent higher ahead of reporting second quarter results.

Reliance Industries rose 1.31% after the oil-to-telecoms conglomerate on Friday posted over an 18% rise in quarterly profit.

Meanwhile, Tata Motors Ltd slipped nearly 4% and was the second-biggest percentage loser on the NSE. (Reporting by Chandini Monnappa in Bengaluru; Editing by Amy Caren Daniel)

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