Mumbai: Technology stocks took a beating on Thursday after Infosys’ share buyback plan and revenue outlook failed to move investors as the Sensex dropped 182 points to an over two-week low and the Nifty broke below 9,200.
On top of it, disappointing macro numbers and persisting military concerns relating to the Korean peninsula and West Asia pulled down the indices.
In weekly terms, the Sensex fell 245.16 points, or 0.82%, while the Nifty was down 47.50 points, or 0.51%. The 30-share index opened lower before slipping further when Infosys results raised concerns about others to follow. It was down 182.03 points, or 0.61%, at 29,461.45 at the close, a level last seen on 28 March.
The barometer had lost 145 points in the previous session. The 50-share NSE Nifty slipped below the 9,200-mark, falling 52.65 points, or 0.57% at 9,150.80.
The IT index bore the brunt after Infosys revenue guidance and plan to return cash to shareholders fell short of the crease, going by the Street expectations. Shares of Infosys slumped 3.86%. TCS and Wipro too came under pressure and fell.
“A weak start to the fourth quarter result season... and the disruptive global market dragged the domestic market down. Additionally, not-so-encouraging IIP, rise in food inflation and anticipation of below-normal monsoon impacted sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services.
The exchanges will be closed on Friday for Baba Ambedkar Jayanti and Good Friday. Mood dampened further after government data, released after trading hours on Wednesday, showed that industrial output slipped to a four-month low by contracting 1.2% in February and fuel prices drove retail inflation to a five-month high of 3.81% in March.
Metal, capital goods, auto, FMCG, power and consumer durables indices all fell by up to 2.84%. A weak trend in Asia reflecting losses in the US because of continued geo-political trouble and comments by US President Donald Trump on the greenback roiled the scene.
According to financial services major Nomura, India’s GDP growth is likely to decelerate to 6.7% in the March quarter but will gradually recover, which cast its shadow, traders added. Tata Steel, Tata Motors, Adani Ports, Bharti Airtel, Maruti Suzuki, L&T and ITC, too ran up losses.
A total of 18 scrips out of the 30-share Sensex pack lost while 12 others closed higher. The broader markets were ahead of the benchmark, with the BSE small-cap and mid-cap advancing.
There was no respite from selling by foreign portfolio investors, who net sold shares worth Rs 580.70 crore on Wednesday, showed provisional data. Other key stocks in Asia too ended lower. Europe remained in the negative zone.