Sensex Tumbles 238 Pts On Weak Growth Outlook By Infosys

Mumbai, Apr 13: Disappointing growth outlook by IT bellwether Infosys for this fiscal amid uncertain global economic environment pulled down the BSE Sensex today by 238 points to 2-week low of 17,094.51.Investors sold bluechips amid
sensex tumbles 238 pts on weak growth outlook by...
PTI 13 Apr 2012, 06:10 PM IST
Mumbai, Apr 13: Disappointing growth outlook by IT bellwether Infosys for this fiscal amid uncertain global economic environment pulled down the BSE Sensex today by 238 points to 2-week low of 17,094.51.

Investors sold bluechips amid weak European markets, and concerns over India's slowing industrial growth. Industrial growth slipped to 4.1 per cent in February.

The BSE 30-scrip benchmark Sensex plunged 238.11 points, or 1.37 per cent, to 17,094.51 as the index heavyweight Infosys suffered hefty losses. Initially, the index rose to 17,398.22.

NSE 50-scrip index Nifty fell 69.40 point, or 1.32 per cent, to 5,207.45, after touching a high of 5,306.75.

Infosys tumbled 12.61 per cent to Rs 2,403.30 following weak revenue guidance for 2012-13, while announcing the fourth quarter earnings result for the last fiscal. It pulled down the IT sector index, which suffered the most by losing 8.76 per cent to 5,404.27, as well as the overall market.

“Disappointing Infosys FY'13 guidance and lower operating margins in Q4 created a negative sentiment in the market. Most of the Tech stocks were hammered drastically after Infosys announced the fourth quarter results,” said Rikesh Parikh, VP Equities at Motilal Oswal Securities.

Milan Bavishi, Head Research, Inventure Growth & Securities said it was a day dominated by IT stocks after Infosys forecast 8-10 per cent growth for 2012-13, as against software services industry body Nasscom's estimate of 11-14 per cent.

Meanwhile, in dollar terms, the company was unable to meet even the lower end of its revenue guidance of USD 1,806 million-1,810 million for Q4 FY'12, as revenues stood at USD 1,771 million.

Meanwhile, brokers said drastic downward revision of industrial growth figures for January has disappointed investors.

The Ministry of Statistics and Programme Implementation (MOSPI) yesterday revised the Index of Industrial Production (IIP) for January from 6.8 per cent to 1.14 per cent because of wrong calculation of sugar production during the month.

Terming sharp revision in the industrial production data as “totally baffling”, Finance Minister Pranab Mukherjee today said he has asked the authorities concerned to look into the issue, which mainly affected the market sentiment.

Asian stocks, meanwhile, closed with gains and key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan rose by up to 1.84 per cent.

However, France's index CAC, Germany's DAX and UK's FTSE were down by up to 1.04 per cent in the afteroon.

Meanwhile, FIIs bought Indian shares worth Rs 135.98 crore yesterday, as per provisional data from the stock exchanges. Overall, 17 of the 30 Sensex scrips closed in the red while others finished in the green.

Major Sensex losers were Hindalco (2.58 pc), Jindal Steel (2.43 pc), ICICI Bank (1.54 pc) and L&T (0.90 pc).

However, Sun Pharma rose 2.54 per cent, Coal India (1.52 pc), Hero MotoCorp (1.52 pc), Tata Motors (1.33 pc), RIL (1.12 pc) and HUL (0.98 pc).

Among the sectoral indices, Realty was down 0.93 pct and Banking - 0.80 pc. Healthcare, however, rose 1.03 pc.

The total market breadth at the BSE was negative, as 1,567 stocks losses ground, while 1,236 finished with gains.  The total turnover shot up to Rs 2,961.77 crore from Rs 2,235.59 crore yesterday.
 
 
 

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