IT stocks drag Sensex 138 points lower

CIOL Bureau
Updated On
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MUMBAI, INDIA: A benchmark index for Indian equities markets on Thursday closed 138 points lower on selling pressure in IT stocks, triggered by software major Infosys lowering its guidance while reporting quarterly results.


A record 11 per cent depreciation of the rupee against the dollar during the quarter fuelled Infosys net profit to Rs.2,372 crore (Rs.23.72 billion), an increase of 33 per cent year-on-year (YoY) and 24 per cent sequentially from the second quarter.

The global software major, however, cut its annual sales forecast in dollar terms because of weaker economic growth in its major markets, including Europe.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,117.19 points, closed at 16,037.51 points, 138.35 points or 0.86 per cent down from its previous close at 16,175.86 points.


IT stocks were the worst losers with the BSE IT index falling 5.96 per cent.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also closed in the red at 4,831.25 points - down 0.61 per cent or 29.7 points from its previous close.

Broader markets edged lower with the BSE 500 closing 0.21 per cent lower.


The market breadth was positive with 1,422 stocks advancing, compared to 1,310 on the decline. Another 143 remained unchanged.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors bought stocks worth $96.14 million Thursday.

Prominent gainers on the 30-scrip Sensex included SBI, up 2.03 per cent at Rs.1,760.70; Hindalco, up 1.81 per cent at Rs.132.35; Tata Power, up 1.72 per cent at Rs.94.50 and Coal India, up 1.66 per cent at Rs.325.50.


Among losers were Infosys, down 8.4 per cent at Rs.2,588.60; TCS, down 3.89 per cent at Rs.1,092.90; Wipro, down 2.6 per cent at Rs.391 and RIL, down 1.44 per cent at Rs.737.55.

Asian markets were subdued on a combination of negative news overnight from the Euro zone. Germany Wednesday reported a contraction in its economy in the third quarter, Spain's industrial output dropped 7 per cent year-on-year and Britain reported weak trade figures.

The Japanese Nikkei shed 0.74 per cent and closed at 8,385.59 points.


Hong Kong's Hang Seng was down 0.3 per cent and closed at 19,095.38 points, while the Chinese Shanghai Composite index closed flat at 2,275.01 points.

Energy scrips weighed on European markets. Concerns on the sovereign debt crisis and economic slowdown in the region continued to depress sentiments.

Britain's FTSE 100 was ruling 0.36 per cent up at 5,691.36 points, while the German DAX was trading 1.33 per cent up at 6,234.01 points.

The French CAC 40 was ruling 0.98 per cent higher at 3,236.37 points.