Markets tumble for 2nd week on disappointing Infosys results
Mumbai: Stock markets continued to fall for the second consecutive week shedding another 208 points due to a sharp fall in Sensex-major Infosys and sustained selling by foreign institutional investors.
Infosys crashed nearly 20 percent due to disappointing Q4 results and a weak revenue forecast for this fiscal.
Sustained selling by FIIs, the main market mover, is one of the main reasons behind the recent downslide. FIIs sold shares worth Rs 587.19 crore during the week, including the provisional figure of April 12.
Hit by growth concerns fanned by weak Infosys guidance, other IT companies too suffered losses. As a result S&P BSE- IT index dropped sharply by 10.26 per cent and was the top loser from the sectoral indices.
Infosys, the country's second largest software exporter, forecast a revenue growth of 6-10 percent for this fiscal, lower than IT industry body Nasscom's estimate.
The decline was in contrast to fall in retail inflation in March and factory output growth of 0.6 percent in February.
The BSE barometer Sensex resumed the week slightly higher at 18,455.80 and moved up further to 18,599.14 on select buying. However, it declined immediately to a seven-month low to 18,173.31 before ending the week at 18,242.56, showing a fall of 207.67 points or 1.13 percent.
It has lost 593.21 points or 3.15 percent in two weeks. Previously, it had settled at 18,021.16 on September 13, 2012.
The NSE 50-share Nifty also dropped by 24.70 points or 0.44 percent to 5,528.55. It had also lost 154.00 points or 2.17 percent in the last two weeks.
Country's third largest software services exporter Wipro was at the receiving end with a fall of 15.71 percent and was the second top loser from the Sensex pack after the company hived-off its three non-IT business divisions into a privately-held company.
15 scrips out of 30-share Sensex pack ended higher while 14 finished lower. Tata Power ruled steady.
Other major losers from the Sensex pack were Tata Steel (2.97 percent), Coal India (2.77 percent), Hero Motoco (1.89 percent), ONGC (1.80 percent) and M&M (1.67 percent).
However, Tata Motors rose by 7.87 percent followed by Icici Bank (4.71 percent), Cipla 4.71 (percent), HDFC Bank 3.66 (percent), Hindlaco Ind (1.95 percent), SBI (1.25 percent), Sun Pharma (1.23 percent), HUL (1.46 percent) and Bajaj Auto (1.39 percent).
Among the major indices, other then S&P BSE-IT, the S&P BSE-Teck dropped by 7.68 percent followed by S&P BSE-Metal (1.21 percent), S&P BSE-PSU (0.83 percent).
However, S&P BSE-Bankex rose by 2.61 percent, S&P BSE-Auto (1.83 percent), S&P BSE-Realty 1.77 (percent) and S&P BSE-FMCG (1.20 percent).
The total turnover at BSE and NSE was Rs 8,560.94 crore and Rs 47,705.31 crore during the week as against Rs 8,699.64 crore and Rs 45,345.87 crore last week.