Vishal Sikka’s exit as the CEO of Infosys and the unpleasantness surrounding the departure saw the Infosys stock plummet around 10 per cent last Friday, with further losses earlier this week. All investor categories were hit; this includes mutual funds — holding more than 9 per cent of the stock — that have seen wealth erosion of about ₹3,000 crore over the last three days.
Despite the many challenges facing the Indian software industry, mutual funds on the whole have big bets on Infosys, long considered a bellwether of the sector. As of July 2017, the overall mutual fund industry held investments of around ₹21,285 crore in the Infosys stock. Data compiled from NAVIndia shows that as of July 31, 2017, out of the 782 equity-related mutual fund schemes, the Infosys stock was part of 421 schemes. The stock is among the top five holdings in 222 schemes, and is the top holding in 19 schemes.
