Infosys shares surge 9 per cent as Narayana Murthy returns as executive chairman

Infosys shares surged by 9 per cent in morning trade on Monday following hopes that N.R. Narayana Murthy's reappointment as executive chairman will put India's second largest software services major back on growth path.

After making a strong opening, shares of Infosys further jumped 9 per cent to Rs 2,624.90 on the BSE. At the NSE, the stock shot-up by 8.84 per cent to Rs 2,625.

The bellwether scrip was the top gainer on both Sensex and Nifty during the morning trade.

Later, the scrip pared some of the gains and was trading at Rs 2,508.40, up 4.19 per cent in late morning trade.

"The move is aimed to strengthen the leadership and put the company back on high growth path. We believe the move is positive for the company," said Ankita Somani, Research Analyst IT, Angel Broking.

Infosys on Saturday announced that it has appointed retired co-founder and the Chairman Emeritus of the company, N R Narayana Murthy, as its Executive Chairman.

Murthy's appointment comes after the company's performance slipped over the last two years and amidst lower than industry growth - quite unusual for a company known to set industry standards. In the IT industry's pecking order, Infosys lost the No. 2 spot to Cognizant in 2012.

Billionaire Murthy accepted a five-year term, over which period he will earn a salary of one-rupee per year and will have his son, Rohan, as his executive assistant.

With PTI inputs