Sensex falls 334 pts, Nifty dips 74 pts after Infy whistle-blower complaint

This is the sharpest decline for the software exporter since April 2013, shows data compiled by Bloomberg

Infosys dragged the benchmark indices lower following an anonymous whistle-blower complaint, which alleged that the company used irregular practices to shore up profits. The Sensex declined 334 points, or 0.9 per cent, to end at 38,963.84, while the Nifty slipped 74 points, or 0.63 per cent, to end at 11,588.

Infosys shed over 16 per cent, weighing the most on both gauges, and offsetting post-earning gains in HDFC Bank and Reliance Industries. It made a 451-point negative contribution to the Sensex.

This is the sharpest decline for the software exporter since April 2013, shows data compiled by Bloomberg.

Infosys plunged after a letter, addressed to the company’s board, charged Chief Executive Officer Salil Parekh of “unethical practices” in recent quarters to boost “short-term revenues and profits”. Market players said the Infosys episode would weigh on performance in the coming days. Infosys has a 6.7 per cent weight in the Sensex.

To ensure independence in the probe, the firm has recused the CEO and CFO from the matter, Chairman Nandan Nilekani said in a statement to the exchanges.