Sensex and Nifty tumbled more than 1 percent today, breaking their six-day record run.
Bombay:
Benchmark stock indices Sensex and Nifty fell more than 1 percent today, snapping their six-day record-breaking run as IT giant Infosys lost more than 8 percent after it slashed its FY24 growth outlook.
The 30-stock BSE Sensex was down 887.64 points or 1.31 percent – the biggest one-day drop in more than four months – to settle at 66,684.26. During the day, it fell 1,038.16 points or 1.53 percent to 66,533.74.
The NSE Nifty fell 234.15 points or 1.17 percent to finish at 19,745, breaking the six-day winning streak. As many as 36 Nifty shares closed negative while 14 rose.
The indices have closed at record highs for the past six trading sessions. While Sensex gained 2,178 points or 2.86 percent in the past six sessions through Thursday, Nifty soared with 594 points or 3.84 percent, setting new highs.
From the Sensex pack, Infosys fell more than 8 percent after the company reported a lower-than-expected 11 percent increase in net profit for the June quarter and delivered a shock as it slashed its FY24 growth outlook to 1-3.5 percent amid delayed customer decision-making amid global macro uncertainties.
“Infosys’ weak guidance cast a shadow over the outlook for India’s IT sector, delaying Nifty’s push for the 20,000 mark. While the heavyweights surrendered to the bears, the small caps showed resilience,” said Vinod Nair, Head of Research at Geojit Financial Services.
Global markets showed a mixed picture, with the US market struggling due to weak earnings, while UK retail sales beat expectations, growing 0.7 percent month on month, he added.
Drops in shares of blue-chip firms Reliance Industries and Tata Consultancy Services also contributed to the bearish trend in stocks. Hindustan Unilever, HCL Technologies, Wipro and Tech Mahindra were the other major laggards.
On the other hand, Larsen & Toubro rose the most by 3.88 percent after winning an order worth more than Rs 7,000 crore from the bullet train project.
NTPC, State Bank of India, Kotak Mahindra Bank, Tata Motors, ICICI Bank, Sun Pharma, Maruti and Bharti Airtel were also among the winners.
BSE Midcap fell 0.26 percent to 29,547.28 while the BSE Smallcap index rose 0.13 percent to 34,146.66 points.
Of the sector indices, BSE IT fell the most with 4.40 percent, followed by Teck with 3.91 percent, consumer discretionary (1.09 percent) and FMCG (0.89 percent).
Capital goods increased by 1.69 percent, industrials and services by 1.33 percent and telecommunications by 0.35 percent.
“The decline was widespread, with the IT pack suffering the most heat, followed by FMCG and energy majors. Meanwhile, the broader indices traded mixed, limiting damage to market breadth,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
In Asian markets, Tokyo and Shanghai ended lower, while Seoul and Hong Kong moved into positive territory.
Equity markets in Europe were trading mostly in the green. The US stock markets ended mostly lower on Thursday.
The global oil benchmark Brent crude rose 1.19 percent to USD 80.59 a barrel.
The BSE benchmark was up 474.46 points or 0.71 percent on Thursday to settle at the new all-time high of 67,571.90, extending the winning momentum into its sixth day. During the day, it rose 521.73 points or 0.77 percent to reach its lifetime intra-day high of 67,619.17.
The Nifty was up 146 points, or 0.74 percent, to finish at the all-time high of 19,979.15. During the session, it was up 158.7 points or 0.80 percent to reach its new all-time high of 19,991.85.
Foreign institutional investors (FIIs) were buyers on Thursday as they bought shares worth Rs 3,370.90 crore, according to exchange data.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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