GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Rs 27,000 Crore and Counting: Investor Wealth Erased by Free Fall of Infosys Stock

The fall in the scrip topped 10% and broke the lower circuit, which stopped the trade of Infy shares on the exchange briefly.

Tushar Dhara | News18.com

Updated:August 18, 2017, 5:05 PM IST
facebookTwittergoogleskypewhatsapp
Rs 27,000 Crore and Counting: Investor Wealth Erased by Free Fall of Infosys Stock
Image for representation only. (Reuters photo)
Loading...
New Delhi: The free fall in Infosys stock has erased Rs 27,000 crore of shareholder value as investors dump the stock and head for the exit doors. In fact, the fall in the scrip topped 10% and broke the lower circuit, which stopped the trade of Infy shares on the exchange briefly.

Any stock that moves 10% either way (rise or fall) triggers a circuit breaker, which means that the stock automatically ceases to be traded on stock exchanges like the Bombay Stock Exchange and the National Stock Exchange. The rules were instituted to prevent fraudulent stock transactions.

In 1992, after the Harshad Mehta stock scam, Indian bourses instituted circuit breakers. What this means is that a 10% movement immediately causes the stock to stop trading. Harshad Mehta was famed for causing massive spikes in stocks (the prices of which were fixed before hand) and thus made a killing on the stock exchanges. Rules framed by the government after the scam was unearthed included placing circuit breakers to rule out suspicious movements in stock prices.

BSE rules state that if a 10% move is registered in a stock price it will cease to trade for 45 minutes (if it is before 1 pm) and for 15 minutes (between 1-2.30 pm). Market players that News18 contacted indicated that the 10% lower limit in Infosys shares was breached after 1 pm.

INFY CEOs

Vishal Sikka’s shock exit from Infosys had wiped out Rs 16,000 crore from the IT major’s market capitalisation in the one hour after market opening at 9.15 am. The fall in the Infy scrip shows no sign of abating.

D.K. Aggarwal of SMC Securities said that Infosys shares were trading at a 1 year low. At 2 pm the shares of India’s second largest software company had fallen 10.38% to Rs 915. That is a drop of Rs 105 per share from today’s opening price.

Also Watch

| Edited by: Ananya Chakraborty
Read full article
Loading...
Most Active
Company Price Change %Gain
Sun Pharma 623.50 +3.80 +0.61
Axis Bank 627.30 +3.85 +0.62
ICICI Bank 340.00 +5.70 +1.71
ITC 313.75 +6.30 +2.05
SBI 302.10 +9.40 +3.21
Company Price Change %Gain
RITES 310.00 +25.15 +8.83
Sun Pharma 623.30 +3.70 +0.60
Axis Bank 627.10 +3.25 +0.52
SBI 302.00 +9.30 +3.18
Tata Steel 580.60 +12.50 +2.20
Top Gainers
Company Price Change %Gain
Grasim 1,045.85 +46.40 +4.64
Yes Bank 393.20 +14.75 +3.90
Lupin 881.25 +31.50 +3.71
SBI 302.10 +9.40 +3.21
Vedanta 215.20 +6.40 +3.07
Company Price Change %Gain
Yes Bank 392.95 +14.25 +3.76
SBI 302.00 +9.30 +3.18
Vedanta 215.00 +6.45 +3.09
HUL 1,780.80 +45.60 +2.63
Tata Motors 257.35 +6.20 +2.47
Top Losers
Company Price Change %Gain
GAIL 387.70 -6.10 -1.55
Hero Motocorp 3,242.30 -40.35 -1.23
Eicher Motors 28,476.15 -327.70 -1.14
ONGC 163.05 -1.40 -0.85
Maruti Suzuki 9,152.10 -48.45 -0.53
Company Price Change %Gain
Hero Motocorp 3,248.60 -37.50 -1.14
ONGC 163.10 -1.00 -0.61
Maruti Suzuki 9,148.30 -53.65 -0.58
Coal India 281.20 -1.25 -0.44
HDFC 1,883.60 -7.30 -0.39
Loading...
Loading...