Market Update: Infosys numbers, profit booking dampen market mood

Negative sentiments outweighed the domestic stock market as the key benchmark indices S&P BSE Sensex and NSE's CNX Nifty slid 1.07 per cent and 1.11 per cent to 27,437.94 and 8,305.25, respectively, on Friday.

Experts believe some profit taking coupled with poor quarterly number also added pressure on market sentiments. The announcement made by the minister of state for finance that the Income Tax department has sent notices in 68 cases to foreign institutional investors (FIIs) for payment of dues totalling Rs 608.83 crore towards Minimum Alternate Tax (MAT) further dampened the mood of market.  According to the website of NSDL, FIIs stood net sellers in the capital markets segment, sold shares worth Rs 84.75 crore.

Among day's major market moving events, Indian software major Infosys reported a consolidated Q4 profit figures fell 4.7 per cent to Rs. 3,097 crores against Rs 3,250 crore in the sequential quarter ended December 2014. Infosys expects 2015-16 revenue to grow 8.4 per cent to 10.4 per cent in rupee terms. Infosys also informed about a major takeover of the US based Kallidus Inc for $120 million.

Further, shares of realty major DLF fell almost 5 per cent after the order of Supreme Court to stay the SAT order in DLF IPO disclose breach case. The stock was down 3.81 per cent at the close of trading session on Bombay Stock Exchange (BSE).
Vinod Nair, head, fundamental research, Geojit BNP Paribas, says, "Market started the day cautiously as seen in the last few days led with MAT issue and downgrading of earnings. During the last trading hours, huge correction from Infosys post Q4, shocked the market."

Pankaj Pandey, head of research, ICICI Securities says, "Poor quarterly number and profit taking hurt domestic stock market on Friday."

Overall, market breadth remained negative as there were seen 684 stocks advancing against 2080 stocks declining on the BSE. The Nifty volatility index, India VIX stood at 19.1050 up 3.27 per cent.

Among the sectoral indices on the BSE, the S&P BSE Realty index tumbled the most 3.85 per cent to 1,573. It was followed by the S&P BSE Consumer Durables index (down 3.18 per cent to 10,542), S&P BSE Information Technology index (down 2.78 per cent to 10,525.16) and S&P BSE Capital Goods index (down 2.57 per cent to 16,663.47).

Jayant Manglik, president, retail distribution, Religare Securities, says, "The overall sentiments and market structure are pointing towards the lower levels in benchmark in the coming sessions. We believe possibility of testing 8,200 level in Nifty is quite high till it's upholding below 8,530 mark. Meanwhile, stocks may continue to witness volatile move in both directions so we advice to maintain stock specific trading approach."

Asian peer markets, Nikkei 225 and Shanghai were down by 0.83 per cent and 0.46 per cent respectively, while Hang Seng was up by 0.84 per cent.