Market losses mount, Infosys pulls down Sensex
Stocks today made an early attempt
to come out of the Infosys jolt, but ultimately could not as
the Sensex lost 266 points and the Nifty cracked below 9,800
at the close amid a lower opening in Europe.
The IT sector as a whole faced the backlash of Vishal
Sikka's surprise resignation as Infosys CEO. The software
giant suffered more losses, down 5.37 per cent, despite its Rs
13,000 crore share buyback announcement.
The stock was the biggest loser among blue-chips on both
the key indices for yet another session, which fell for the
Investors turned skittish about joint military drills
between the US and South Korea that kicks off today, which may
spark a toughening of stand by North Korea.
The 30-share Sensex ended 265.83 points lower, or 0.84
per cent, at 31,258.85. The gauge had lost 270.78 points in
the previous session on Friday.
The broader NSE Nifty moved between 9,884.35 and
9,740.10, before ending down 83.05 points, or 0.84 per cent,
"Market failed to retain its opening strength due to
continued pressure on the IT major (Infosys) despite a premium
buyback announcement. Furthermore, pullout of foreign funds
and persistent miss in quarterly earnings led the market to
consolidate," said Vinod Nair, Head of Research, Geojit
Financial Services Ltd.
European shares turned lower after investors grew wary of
US President Donald Trump's ability to carry forward his
ambitious economic agenda after some high-level exits. Asian
markets closed mixed.
Foreign portfolio investors (FPIs) gave shares a wide
berth net selling Rs 2,182.12 crore. Domestic institutional
investors (DIIs) bought shares worth a net Rs 584.591 crore on
Friday, provisional data showed.
Losses were also registered at the counters of Adani
Ports, Dr Reddy's, Sun Pharma and ONGC, falling by up to 2.74
The ongoing turbulence at Infosys, India's second-largest
IT exporter, continued to push down the BSE IT index, which
slumped 2.04 per cent, followed by technology, PSU and
Broader markets took more hits compared to the main
indices, down by up to 1.45 per cent, as investors locked in
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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