IT stocks drag Sensex 138 points lower (Roundup)

January 12th, 2012 - 7:06 pm ICT by IANS  

Sensex Mumbai, Jan 12 (IANS) A benchmark index for Indian equities markets Thursday closed 138 points lower on selling pressure in IT stocks, triggered by software major Infosys lowering its guidance while reporting quarterly results.

A record 11 percent depreciation of the rupee against the dollar during the quarter fuelled Infosys net profit to Rs.2,372 crore (Rs.23.72 billion), an increase of 33 percent year-on-year (YoY) and 24 percent sequentially from the second quarter.

The global software major, however, cut its annual sales forecast in dollar terms because of weaker economic growth in its major markets, including Europe.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,117.19 points, closed at 16,037.51 points, 138.35 points or 0.86 percent down from its previous close at 16,175.86 points.

IT stocks were the worst losers with the BSE IT index falling 5.96 percent.

The 50-scrip S&P; CNX Nifty of the National Stock Exchange also closed in the red at 4,831.25 points - down 0.61 percent or 29.7 points from its previous close.

Broader markets edged lower with the BSE 500 closing 0.21 percent lower.

The market breadth was positive with 1,422 stocks advancing, compared to 1,310 on the decline. Another 143 remained unchanged.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors bought stocks worth $96.14 million Thursday.

Prominent gainers on the 30-scrip Sensex included SBI, up 2.03 percent at Rs.1,760.70; Hindalco, up 1.81 percent at Rs.132.35; Tata Power, up 1.72 percent at Rs.94.50 and Coal India, up 1.66 percent at Rs.325.50.

Among losers were Infosys, down 8.4 percent at Rs.2,588.60; TCS, down 3.89 percent at Rs.1,092.90; Wipro, down 2.6 percent at Rs.391 and RIL, down 1.44 percent at Rs.737.55.

Asian markets were subdued on a combination of negative news overnight from the Euro zone. Germany Wednesday reported a contraction in its economy in the third quarter, Spain’s industrial output dropped 7 percent year-on-year and Britain reported weak trade figures.

The Japanese Nikkei shed 0.74 percent and closed at 8,385.59 points.

Hong Kong’s Hang Seng was down 0.3 percent and closed at 19,095.38 points, while the Chinese Shanghai Composite index closed flat at 2,275.01 points.

Energy scrips weighed on European markets. Concerns on the sovereign debt crisis and economic slowdown in the region continued to depress sentiments.

Britain’s FTSE 100 was ruling 0.36 percent up at 5,691.36 points, while the German DAX was trading 1.33 percent up at 6,234.01 points.

The French CAC 40 was ruling 0.98 percent higher at 3,236.37 points.

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