“We are comfortable that we have had a very thorough and comprehensive investigation, which will put us in good stead when we engage with them (SEC),” Chairman Nandan Nilekani had said after the internal investigation found no wrongdoing. After the SEC okay, the shares of Infosys
surged 14 per cent to close at Rs 600 at the National Stock Exchange.
“Definitely, there was an overhang over the stock, which is now gone with the SEC clean chit. So, apart from the near-term concerns over coronavirus, the company will post industry-leading growth numbers once this issue settles down,” said Sanjeev Hota, head of research at Mumbai-based brokerage Sharekhan.
He, however, said that as with its peers, the Bengaluru-headquartered firm is likely to see delays in signings of large deals. Apart from fall in discretionary spending by clients, owing to the global virus spread.
The information technology industry is staring at a demand slowdown. Many developed countries, including America, have started to see establishments shutting down, to ensure social distancing to fight the virus’ spread. As a result, reports suggest, deal signings worth $3-4 billion have been deferred in this month alone.