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Sensex closes 87 pts lower, Nifty below 16,250; IT shares crash post TCS' Q1 show

Sensex closes 87 pts lower, Nifty below 16,250; IT shares crash post TCS' Q1 show

Sensex declined 86.61 points or 0.16 per cent to end at 54,395.23. During the day, it fell 391.31 points or 0.71 per cent to 54,090.53.

Bharti Airtel, TCS, HCL Technologies, Infosys, Wipro, Tech Mahindra, Larsen & Toubro and Power Grid were the top Sensex losers falling up to 5.03 per cent. Bharti Airtel, TCS, HCL Technologies, Infosys, Wipro, Tech Mahindra, Larsen & Toubro and Power Grid were the top Sensex losers falling up to 5.03 per cent.

Indian market closed lower amid high volatility in the last hour of trade on Monday. Benchmark indices fell after three days of gain on heavy selling in IT stocks and weak trends in global markets.

Sensex declined 86.61 points or 0.16 per cent to end at 54,395.23. During the day, it fell 391.31 points or 0.71 per cent to 54,090.53. Nifty slipped 4.60 points or 0.03 per cent to close at 16,216.

Bharti Airtel, TCS, HCL Technologies, Infosys, Wipro, Tech Mahindra, Larsen & Toubro and Power Grid were the top Sensex losers falling up to 5.03 per cent. TCS stock fell 4.64 per cent after Q1 earnings failed to match market expectations.

ALSO READ: TCS shares fall 4% as Q1 earnings miss estimates

Tata Steel, M&M, Dr Reddy's Lab, ICICI Bank and Asian Paints were the top Sensex gainers, rising up to 3.04 per cent.

"As the domestic market turned its focus towards quarterly results, the weak start of IT earnings wounded the sentiments, forcing benchmark indices to open on a weak note. However, with support from banking, metal and energy stocks, the domestic market managed to pare its losses to close flattish," said Vinod Nair, Head of Research at Geojit Financial Services.

Banking shares were the top sectoral gainers with their index rising 346 points on BSE. The BSE IT index was the top loser, falling 777 points to 28,020.

However, market breadth was positive with 2,096 stocks ending higher against 1,328 stocks falling on BSE. 158 shares were unchanged.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, "Markets languished in negative territory for major part of the trading session, although it drifted into positive territory for sometime towards the fag end before reversing the trend to end in the red. IT stocks led the weakness in key benchmark indices after TCS Q1 results announced on Friday failed to cheer the street. Also, the downward trend in the European markets in early trades further dampened sentiment back home. Technically, after the early morning selloff, Nifty found support near 16,100 and recovered sharply. We are of the view that the market is likely to continue with the range-bound activity in the near future. For traders, 16,100 would act as a sacrosanct support level, while 16,300 would be the immediate resistance level. As long as the index trades above 16,100, the uptrend wave is likely to continue till 16,300-16,350 and below 16,100, the index could slip up to 16,050 level."

Market cap of BSE-listed firms rose to Rs 253.30 lakh crore today against Rs 251.59 lakh crore in the previous session. Foreign institutional investors remained net sellers on Friday, offloading shares worth Rs 109.31 crore, as per exchange data.

Meanwhile, the rupee fell 22 paise to close at a fresh lifetime low of 79.48 against the US dollar, tracking strong greenback overseas and subdued domestic equities.

At the interbank forex market, the local unit opened weak at 79.30 against the greenback and witnessed an intra-day high of 79.24 and a low of 79.49.

Indian market gained for the third consecutive session on Friday amid mixed global cues. Sensex gained 303.38 points to end at 54,481.84. During the day, it jumped 448.68 points to 54,627.14. Nifty rose 87.70 points to close at 16,220.60.

Global markets

In Asia, markets in Shanghai, Hong Kong and Seoul settled lower, while Tokyo ended higher. Equity markets in Europe were trading lower in mid-session deals. The US markets had ended on a mixed note on Friday.

Meanwhile, international oil benchmark Brent crude declined 1.48 per cent to $106.3 per barrel.

Share Market update: Sensex falls 86 pts, Nifty below 16,250; Airtel, TCS top losers

Also read: Rupee falls 22 paise to record low against US dollar

Published on: Jul 11, 2022, 5:05 PM IST
Posted by: Aseem Thapliyal, Jul 11, 2022, 4:36 PM IST