Infosys AI deal termination: Here's how the stock is expected to open tomorrow

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Infosys share price impact: Infosys shares are anticipated to experience substantial volatility in Tuesday's trading session following the company's loss of a multi-year contract valued at USD 1.5 billion. Analysts expect shares of Infosys to open in the red in tomorrow's session.

In an exchange filing on December 23 (Saturday), the IT major announced that," This is in continuation to the disclosure made by Infosys via a letter dated September 14, 2023, titled “Company Update" with respect to a Memorandum of Understanding with a global company which was subject to parties entering into a Master Agreement. The global company has now elected to terminate the Memorandum of Understanding, and the parties will not be pursuing the Master Agreement." Also Read: Kotak downgrades HCL Tech, Persistent Systems; Infosys remains its top pick; here's what the brokerage firm says The agreement between Infosys and the company was planned as a 15-year commitment, with the Memorandum of Understanding (MoU) signed on September 14, 2023.

"Infosys has entered into a Memorandum of Understanding with a global company to provide enhanced digital experiences, along with modernization and business operations services, leveraging Infosys platforms & AI solutions. The total client target spend over 15 years is estimated at USD 1.5 billion.

This is subject to parties entering into a master agreement," the company said in an exchange filing made in September. Also Read: Nifty IT index gains 1.6% despite Accenture's cautious outlook; what's driving the rally? The termination of the deal comes less than two weeks after the company's chief financial officer (CFO), Nilanjan Roy, suddenly resigned after holding the position for around six years.