Business Today
Loading...

Stock markets tumble for second week on weak Infosys results

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.

twitter-logoPTI | April 13, 2013 | Updated 15:16 IST

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 per cent 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 per cent 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 per cent 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 per cent.

It has lost 593.21 points or 3.15 per cent 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 per cent to 5,528.55. It had also lost 154.00 points or 2.17 per cent in the last two weeks.

Country's third largest software services exporter Wipro was at the receiving end with a fall of 15.71 per cent 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 per cent), Jindal Steel (2.09 per cent), Coal India (2.77 per cent), Hero Motoco (1.89 per cent), ONGC (1.80 per cent) and M&M (1.67 per cent).

However, Tata Motors rose by 7.87 per cent followed by ICICI Bank (4.71 per cent), Cipla 4.71 (per cent), HDFC Bank 3.66 (per cent), Hindlaco Ind (1.95 per cent), SBI (1.25 per cent), Sun Pharma (1.23 per cent), HUL (1.46 per cent) and Bajaj Auto (1.39 per cent).

Among the major indices, other then S&P BSE-IT, the S&P BSE-Teck dropped by 7.68 per cent followed by S&P BSE-Metal (1.21 per cent), S&P BSE-PSU (0.83 per cent).

However, S&P BSE-Bankex rose by 2.61 per cent, S&P BSE-Auto (1.83 per cent), S&P BSE-Realty 1.77 (per cent) and S&P BSE-FMCG (1.20 per cent).

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. .

The Indian rupee recovered marginally by 29 paise to close at 54.52 against the Greenback during the shortened week under review following fresh dollar selling by exporters amid sustained capital outflows.

However, weakness in domestic equities restricted the rupee rise to some extent, a forex dealer said.

The Forex market was closed on April 11 on account of "Gudi Padwa".

At the Interbank Foreign Exchange (Forex) market, the local unit commenced almost stable at 54.80 a dollar from last weekend's close of 54.81 and immediately touched a low of 54.84 on initial dollar demand from importers and hesitancy in domestic equities.

It later bounced back to a high of 54.34 before ending the week at 54.52, showing a rise of 29 paise or 0.53 per cent.

Last week, it had tumbled by 52 paise or 0.96 per cent.

The Indian benchmark Sensex closed down by nearly 208 points or 1.13 per cent, extending losses for the second week while FIIs pulled out Rs 587.19 crore in the week, including provisional data of April 12.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "This week Rupee appreciated against dollar. To start the week the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, traded weak at 82.33 as the euro advanced against the dollar, supporting the rupee."  

  • Print
  • COMMENT
BT-Story-Page-B.gif
A    A   A
close