Mumbai, June 3: The return of N.R. Narayana Murthy at the helm of Infosys has been met with a mix of cheer and caution by investors and analysts.

Shares of the Bangalore-based company today rose nearly 4.42 per cent, or Rs 106.35, to settle at Rs 2,513.95 on the Bombay Stock Exchange as investors viewed the appointment as a step in the right direction to revive the fortunes of the software major.

The rally added over Rs 6,100 crore to Infosys’s market capitalisation following an almost 9 per cent surge in its shares in intra-day trade.

This came on a day the 30-share benchmark index was reeling under selling pressure to end with a loss of nearly 150 points at 19610.48

Defying weakness in the stock market, the bellwether scrip emerged as the top gainer on both the key indices —Sensex and Nifty.

Murthy’s appointment received positive response from most of the brokerages with a couple of them upgrading their target price.

Bank of America Merrill Lynch raised its target price to Rs 2,850 from Rs 2,350, while Credit Suisse increased it to Rs 2,700.

Analysts were of the opinion that the comeback of Murthy would benefit Infosys on various fronts, including employee morale.

“Infosys’s board has taken this decision after two years of weakness in reported financials and stock volatility. We believe Murthy’s presence should help strengthen market perception about the leadership and improve execution at Infosys,” a report of investment bank Morgan Stanley stated.

“With Murthy’s addition to the leadership team, the bottom for the stock is now behind it. We believe Murthy could also help Infosys better navigate the uncertainty around US immigration issues,” it added.

However, a few analysts expressed caution by pointing out that it will take around nine months for the results to show.

“The pace of improvement in reported financials (of Infosys) could take 2-3 quarters,” Vipin Khare and Gaurav Rateria of Morgan Stanley said.

A note from Espirito Santo Securities said though the appointment would bring comfort to all stakeholders and raise hopes of a quicker recovery, “it also signifies the realisation of the need for a turnaround, and that time is running out’’.

Its analysts added that the company should set itself on a steady course before chief executive officer S.D. Shibulal retired in 2015. The company should start the transition process within 12 months.

Murthy, who had shed his executive role seven years ago and retired as the head of Infosys in August 2011, has been appointed the executive chairman, replacing K.V. Kamath during whose tenure the company shares slumped 15 per cent.

Billionaire Murthy has accepted a five-year term during which he will earn a salary of Re 1 per year and have his son, Rohan, as his executive assistant.