August 21, 2017 / 4:25 AM / a month ago

India's Infosys shares extend losses after CEO quit

MUMBAI, Aug 21 (Reuters) - Shares of India’s Infosys Ltd fell as much as 4.6 percent on Monday to a near three-year low, slumping for a second consecutive session, after brokerages including Nomura downgraded the stock following the resignation of its chief executive.

Shares slumped 9.6 percent on Friday after CEO Vishal Sikka unexpectedly resigned after a long-running feud with the company’s founders, wiping out $3.45 billion off Infosys’ market value.

Nomura downgraded the stock to “reduce”, saying the uncertainty over Infosys’ management could hamper long-term growth, while expressing worries that the tussle between the founder and promoters could escalate.

The concerns about Infosys’ future trumped the company’s approval on Saturday of a 130 billion rupees ($2.03 billion) share buyback.

As of 0421 GMT, Infosys shares were down 2.5 percent, hitting their lowest since September 2014.

$1 = 64.0525 Indian rupees Reporting by Rafael Nam; Editing by Sherry Jacob-Phillips

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