Mumbai: The Bombay Stock Exchange benchmark Sensex fell on Wednesday after bellwether Infosys Technologies cut its full-year earnings outlook, but gains in cement stocks arrested the downside.
The Sensex ended the day nearly 100 points in the red, with technology shares leading the slide.
“Though the business momentum continues to be strong, I think Infosys will be under pressure till the time there is some stability in rupee and the company gives some positive news,” Dipesh Mehta, an IT analyst at Khandwala Securities said.
Larger rival Tata Consultancy and fourth-ranked Satyam Computer fell more than 3%. Both these firms report their results next week.
The rupee’s 9.5% rise against the dollar this year has raised concerns about the profit outlooks of the firms, as they earn most of their revenue from the United States.
The index had hit a record high on each of the previous seven days, and at Tuesday’ close had risen almost 21% from its low for 2007, which was hit in mid-March.
Cement firms gained on expectations of good results, traders said. Second-largest cement maker ACC, which reports next week, was up 3.3% and Grasim Industries rose 2.7% .
The 50-share NIfty closed down 18.90 at 4,387.