Sensex falls 307 points; likely to remain volatile (Weekly market review)

July 15th, 2012 - 5:57 pm ICT by IANS  

Sensex Mumbai, July 15 (IANS) Indian stock markets are likely to open volatile Monday, after the benchmark indices snapped five-week of winning spree in the previous week, on disappointing earnings forecast of Infosys and negative cues from global markets.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), ended the week at 17,213.70 points, down 1.75 percent or 307.42 points from its previous week’s close at 17,521.12 points.

The benchmark Sensex had gained almost 10 percent in the previous five weeks.

The Sensex witnessed volatile trading during the week ended Friday. It started on a sluggish note but rallied 226 points Tuesday.

However, the Sensex plunged 1.5 percent Thursday after IT bellwether Infosys announced disappointing earnings forecast. Weakness in global markets also dampened sentiments.

Snapping five-week rally, the wider 50-scrip S&P; CNX Nifty of the National Stock Exchange also fell by almost two percent in the weekly trade. The Nifty ended the week at 5,227.25 points.

Infosys, the country’s second largest software exporter, plunged almost 10 percent in the last two trading sessions of the week as its April-June quarter earnings forecast disappointed investors.

Infosys lowered its revenue forecast in dollar terms for the financial year 2012-13 to $7.34 billion from its earlier estimate of $7.6 billion.

Better than expected earnings of Tata Consultancy Services (TCS) failed to boost sentiments at the market on the last trading day of the week.

The country’s largest software services exporter TCS announced 38 percent jump in its net profit for the quarter ended June 30.

Markets movement in the week beginning Monday is likely to be dominated by earnings of the major firms.

Investors are also looking for greater clarity on taxation front and other economic policies.

Prime Minister Manmohan Singh Friday set up an experts’ committee to review and rework the controversial General Anti Avoidance Rules (GAAR) tax provision. The committee has been asked to submit its report to the government by Sep 30, 2012.

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