IT stocks, inflation dampen markets, Sensex closes 338 points down (Roundup)
April 15th, 2011 - 7:12 pm ICT by IANS
Mumbai, April 15 (IANS) Battered IT stocks, led by bellwether Infosys, and high inflation data pulled down a benchmark index for Indian equities markets Friday, which closed 338 points lower.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 19,670.07 points, closed at 19,386.82 points, down 310.04 points or 1.57 percent from its previous close at 19,696.86 points.
The 50-scrip S&P; CNX Nifty of the National Stock Exchange shut shop 1.47 percent lower at 5,824.55 points.
IT stocks saw heavy selling with Infosys leading the sector’s loser list after its results disappointed analyst expectations. The company reported a dip in earnings before interest, tax at 29 percent for the quarter ended March 31, compared to 30 percent in the sequential order.
The Infosys stock fell 9.59 percent to close at Rs.2,988.80.
Broader markets closed listless, with the BSE midcap index closing 0.2 percent down and the BSE smallcap index ending 0.17 percent lower.
Telecom, realty and banking were among the other major losing sectors.
Among major gainers on the Sensex were Hero Honda, up 5.52 percent at Rs.1,830.85; Bharti Airtel, up 1.35 percent at Rs.372.15; Bajaj Auto, up 1.06 percent at Rs.1,412; and Jaiprakash Associates, up 0.92 percent at Rs.99.10.
The losers included Wipro, down 5.04 percent at Rs.449.60; DLF, down 2.43 percent at Rs.245.05; and ICICI Bank, down 2.37 percent at Rs.1,101.30.
The market breadth was negative with 1,300 stocks advancing, 1,601 on the decline and 93 remaining unchanged.
Asian markets closed lower as concerns on the Japanese nuclear front and Chinese monetary policy tightening pushed traders on the back foot.
The Japanese Nikkei average closed 0.65 percent down at 9,591.52 points, while the Shanghai composite index of the Chinese stock exchanges moved up 0.26 percent to end at 3,050.53 points.
The Hang Seng of the Hong Kong stock exchange closed flat at 24,008.07 points.
European stocks were trading dull as investors were wary of further rate hikes by the Chinese central bank amid continuing high levels of inflation in that country. The sovereign debt woes of countries in the Euro zone also continued to plague the markets.
Around midday, the French CAC 40 was trading 0.28 percent lower at 3,959.25 points, while Britain’s FTSE was ruling 0.2 percent down at 5,975.83 points.
The German DAX was ruling 0.39 percent up at 7,174.1 points.
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