The Infosys Technologies campus in Bangalore. Photo: AFP

Shares of Infosys Ltd rallied more than 5% on Indian bourses during morning deals on Monday on the back of a 1:1 bonus issue declared on Friday after the markets closed.

India’s second-largest software services exporter announced its first-quarter results on Friday, with profits and operational numbers falling short of analysts’ estimates, while revenue and financial year 2019 guidance met expectations.

Infosys posted a profit of 36.12 billion rupees (US$526.9 million) in the three months to June, below estimates because of a one-off charge of $39 million related to the fair-value reduction of its Panaya unit.

In contrast, its rival and market leader Tata Consultancy Services beat analysts’ estimates on all parameters.

The board of directors of Bangalore-based software giant Infosys on Friday approved a bonus issue and stock dividend of American depositary shares to mark the 25th year of stock-market listing.

With this surge in share prices, Infosys breached 3 trillion rupees in market cap for the first time. At Friday’s closing, Infosys held a market capitalization of 2.85 trillion rupees on the Bombay Stock Exchange.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.