The exits come amidst organizational restructuring that Mr. Murthy is overseeing after returning to revive the sagging fortunes of the company in June.
At 09:40 a.m.; Infosys was trading 1.4 per cent lower at Rs 3500.20. It has hit a low of Rs 3495.85 and a high of Rs 3538.20 in trade today.
Most analysts do not see an immediate impact on performance or top line of the company. However, the stock may languish in the medium term till more clarity emerges, they say.
"The magnitude of exits could create leadership vacuum. What is disappointing is the inability of the organization to retain core team members," Kotak Institutional Equities said in a note.
"This perhaps indicates that the internal challenges are significantly higher than our initial assessment. We believe that the impact of exits could be felt in the medium term," added the report.
Kotak is of the view that returns in this stock may be capped, especially after strong recent performance and increasing concerns on efficacy of reorganization.
Well, investors don't have to worry about marginal correction in the stock as the long term story for Infosys is still intact, say analysts.
A K Prabhakar, Independent Advisor is of the view that Infosys will react negative but that would give good entry point to investors who are looking to stay long with the stock.
"As few observers had sensed that this exit was on cards, he sold part of his stake in the company," he added.
Infosys shares have been in some sort of an uptrend so far in the year 2013. The stock has managed to rally a little over 50 per cent in the same period.
It is trading well over 3-year highs and has also became the sixth Indian company to cross the Rs 2 lakh-crore market capitalization last week on Thursday.
Most analysts say re-rating of the Infosys stock considering its valuations are at a steep 20 per cent discount to TCS based on forward P/E multiples, ET reported.
Of the 70 broking firms which are tracking Infosys, 42 had 'Buy' recommendations while the number of 'Hold' and 'Sell' recommendations were 19 and 9, respectively.
Ankita Somani, Research Analyst, IT at Angel Broking who has a 'Neutral' rating on the stock is of the view that the exit of Mr. Balakrishnan will not make any material impact at a business level as he was not heading a very big chunk of the company's revenues but the development does indicate that there is a severe management transition happening in the company.
"Though the impact of top management resignations at Infosys will not immediately make an impact to the topline of Infosys, however, it may have some effect over a medium-term," she added.
"Senior level exits remain a concern for the company and the Infosys stock may see some correction next week starting Monday following the news," Somani concludes.
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