Friday, March 29, 2024
Advertisement
  1. You Are At:
  2. News
  3. Business
  4. Infosys jolts markets again, Sensex down 130 pts

Infosys jolts markets again, Sensex down 130 pts

Mumbai, Oct 12: Disappointing second quarter profits and lower sales guidance by Infosys today pulled down the Sensex by 130 points, amid a revival in industrial growth and easing inflation that dimmed rate cut hopes. 

PTI PTI Updated on: October 12, 2012 18:52 IST
infosys jolts markets again sensex down 130 pts
infosys jolts markets again sensex down 130 pts

Mumbai, Oct 12: Disappointing second quarter profits and lower sales guidance by Infosys today pulled down the Sensex by 130 points, amid a revival in industrial growth and easing inflation that dimmed rate cut hopes. 




The BSE benchmark index opened nearly 78 points lower, dragged down by Infosys scrip which tanked nearly 8 per cent after the IT major unveiled the second quarter numbers.

The Sensex ended lower by 129.57 points, or 0.69 per cent at 18,675.18. Likewise, Nifty fell by 32 points to 5,676.05.  Brokers said market sentiment was hit due to a cut in Infosys' September quarter profit and full-year sales outlook.

 Infosys posted 24.3 per cent jump in consolidated net profit at Rs 2,369 crore, while its revenues were up 21.7 per cent at Rs 9,858 crore.

The IT major also lowered its revenue growth guidance for the current financial year to 17.3 per cent from the earlier target of 19.7 per cent. Infosys scrips pared some losses to close 5.36 per cent lower at Rs 2,395.65. 

“It was a down day for markets...for fourth quarter in a row, Infosys' stock crashed post results. Infosys guided about challenging times and trimmed down its FY13 guidance,” said Nagji K Rita, CMD, Inventure Growth & Securities. 

In 30-share Sensex, 16 stocks declined while 14 scrips including GAIL, Tata Power and Hindalco ended higher. 

Meanwhile, industrial production grew by 2.7 per cent in August, reversing the contraction trend witnessed during the previous two months.

This data coupled with September consumer inflation at 9.73 per cent, marginally down from the previous month, also dimmed rate cut hopes. Interest-sensitive sectors like realty and auto shares shed value as investors reduced positions. 

“After a long time, India's growth and inflation data are moving in the right direction...the upcoming WPI inflation (on Monday) will be the most important data before the RBI policy meeting on October 30,” said Nomura Economist Sonal Varma. 

Meanwhile, HDFC Bank shares gained over 1 per cent on the lender posting 30 per cent rise in quarterly profit.
Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business

Advertisement
Advertisement
Advertisement
Advertisement