Rediff.com« Back to articlePrint this article

Sensex slumps 520 points after 9-day rally, Infy down 9 pc

April 17, 2023 17:52 IST

Equity benchmark indices Sensex and Nifty buckled under selling pressure after a nine-session rally on Monday, as massive sell-off in IT, tech and telecom counters unnerved investors.

div class="imgcaption">IMAGE: The BSE, Mumbai. Photograph: Danish Siddiqui/Reuters

Intense selling in Infosys, which fell over 9 per cent after lower-than-expected revenue guidance for FY24, and HDFC twins also pulled the benchmarks down.

The 30-share BSE Sensex tanked 520.25 points or 0.86 per cent to settle at 59,910.75. During the day, it plunged 988.53 points or 1.63 per cent to 59,442.47.

The broader NSE Nifty fell 121.15 points or 0.68 per cent to finish at 17,706.85.

 

"The market responded negatively to the weak start of the earnings season by IT bellwether and their cautious outlook. On the global front, the US 10-year bond yield rose as solid US job data raised concerns over further rate hikes by the Fed.

"The earnings reports, primarily from the IT and banking sectors, will influence market trends in the coming days. We expect Nifty50 earnings to grow by 10 per cent in Q4 FY23, driven by banking and finance, auto, telecom, and FMCG," said Vinod Nair, head of research at Geojit Financial Services.

Among the Sensex firms, Infosys emerged as the biggest laggard, falling over 9 per cent after the company reported lower-than-expected growth in the fourth quarter net profit and gave a weak 4-7 per cent revenue growth guidance for FY24 amid the tightening of IT budgets by clients following a turmoil in the US banking sector.

Tech Mahindra, HCL Technologies, Larsen & Toubro, NTPC, Wipro, HDFC, Tata Consultancy Services and HDFC Bank were the other laggards from the 30-share pack.

Nestle, Power Grid, State Bank of India, Kotak Mahindra Bank, IndusInd Bank and UltraTech Cement were among the winners.

The broader market ended in the green as against the heavy fall in the benchmark index. The BSE midcap gauge climbed 0.56 per cent and smallcap index advanced 0.13 per cent.

Among indices, IT tumbled 4.77 per cent, followed by teck which declined 4.56 per cent. Industrials and capital goods were the other laggards.

Commodities, consumer discretionary, energy, FMCG, consumer durables and metal were among the winners.

"Indian equities ended lower led by weakness in the IT sector," said Mitul Shah - Head of Research at Reliance Securities.

In Asian markets, Seoul, Japan, Shanghai and Hong Kong ended in the green.

Markets in Europe were also trading in the positive territory during the afternoon trade. The US markets had ended lower on Friday.

Equity markets were closed on Friday on account of Ambedkar Jayanti.

Meanwhile, global oil benchmark Brent crude dipped 0.31 per cent to USD 86.04 per barrel.

Foreign Portfolio Investors (FPIs) bought equities worth Rs 221.85 crore on Thursday, according to exchange data. 

© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.