Mumbai: The BSE Sensex that was already hurt by Infosys got battered further in afternoon trade due to Eurozone worries, taking a knock of 250 points on Friday. Even expectations of rising India's trade deficit in FY12 added fuel to the fire.
The market tried to stay moderately higher in the first half of trade on Friday led by support from every sector barring technology, but the news of sharp increase in borrowings by Spain from ECB in March and China's slowest GDP growth since the first quarter of 2009 dampened the sentiment quite badly in the second half of trade.
The BSE benchmark fell 238.11 points or 1.37 per cent, to close at 17,094.51 and the NSE benchmark slipped 69.40 points to 5,207.45.
Infosys that kicked off the fourth quarter earnings season on Friday lost by Rs 350 a share or 12 per cent, to close at Rs. The company met the street expectations for its Q4 numbers, but it disappointed by its guidance for the financial year 2012-13 and next quarter i.e. Q1, warning the year remained challenging due to slower growth in the global economy.
Second largest software services provider reported a net profit of Rs 2,316 crore for the January-March quarter, up 27.4 per cent year-on-year, but down 2.4 per cent sequentially while CNBC-TV18 poll of analysts expected at Rs 2,290 crore. Infosys expects a revenue growth (in dollar terms) of 8-10 per cent for FY12 and 0-1 per cent QoQ for Q1 while analysts on average had expected Infosys to guide to a 12-14 per cent growth in FY13 revenue and 2.5-4 per cent in Q1.
Moshe Katri of Cowen & Co said Infosys guidance was disappointing and he has been concerned about the company's business strategy since the third quarter earnings release.
At 14:59 hours IST: Sensex falls 250 pts on Spain worries; Infy sheds Rs 350/sh
The BSE Sensex stayed sharply lower as European markets took beating after the Spanish banks borrowed euro 316.3 billion in March from the European Central Bank, which was the highest ever amount till now while they borrowed euro 169.8 billion in February. Even the Chinese data came in lower than expectations - gross domestic product growth was at 8.1 per cent in Q1 as against 8.9 per cent in Q4 while market expected at 8.3 per cent, which was the lowest since the Q1 of 2009. France's CAC, Germany's DAX and Britain's FTSE dropped 0.5-1 per cent while IBEX (Spain) lost over 2 per cent. Spain's 10-year bond yield went up by 1 per cent.
Back home, The BSE benchmark fell 251 points to 17,081 and the NSE benchmark tanked 72 points to 5,202.
Shares of software services provider Infosys plunged 12.5 per cent post lower than expected guidance for Q1 and FY13 by the company while its rival TCS was down 5.6 per cent and Wipro tanked 4.5 per cent.
All major banks turned negative - private sector lenders ICICI Bank and Axis Bank dropped 1.5 per cent and 2.3 per cent, respectively. Top lender State Bank of India was down 0.8 per cent.
Engineering and construction company Larsen & Toubro slipped 0.8 per cent while state-owned BHEL was flat.
However, Reliance Industries, India's most valued stock and cigarette major ITC gained 0.8 per cent each.
Auto stocks stayed higher, though they came off day's high - Tata Motors, Hero Motocorp, Maruti and Bajaj Auto were up 0.5-1.5 per cent.
At 14:10 hours IST: Sensex tanks 200 pts on eurozone woes; ICICI extends losses
The BSE Sensex fell more than 200 points following further decline in European markets while the NSE Nifty tested the 5200 level. France's CAC and Germany's DAX tumbled 1 per cent each while Britain's FTSE was down 0.5 per cent. Even the Dow Jones futures dropped 56 points. The fall was majorly led by banks, capital goods and technology stocks.
The BSE benchmark tanked 254 points to 17,078.35 and the NSE benchmark was down 71.50 points to 5,205.35.
Private sector lenders ICICI Bank, which shot up as much as 2.5 per cent, fell 1.5 per cent and HDFC Bank was down 0.8 per cent while top lender State Bank of India trimmed its gains to 0.5 per cent.
Index heavyweights L&T and ONGC slipped 0.7 per cent each. Even Reliance Industries, India's most valued stock turned flat, which was up more than 2 per cent at one point of time on Friday.
Infosys plunged 10.6 per cent post the company gave much lower than expected guidance for Q1 and FY13 whlie rivals TCS and Wipro dropped 5.5 per cent and 4.5 per cent, respectively.
Declining shares outnumbered advancing by 756 to 639 on the National Stock Exchange.
At 13:54 hours IST: Sensex falls; Infosys dives over 10 per cent, ICICI Bank turns red
The BSE Sensex turned negative amid volatility in the afternoon trade, tracking weak opening of European markets. Private sector lender ICICI Bank shed all gains while technology stocks extended their fall quite sharply.
Infosys, India's No. 2 software services exporter crashed over 10 per cent after giving much weaker than expected guidance for next quarter and financial year. In dollar terms, company sees revenue growth of 0-1 per cent for Q1FY13 and 8-10 per cent for FY13 as against market expectation of 2.5-4 per cent and 12-14 per cent, respectively. Sentiment impact - Tata Consultancy Services plunged 5 per cent and Wipro was down 4 per cent.
The BSE benchmark was down 50.16 points to 17,282.46 and the NSE benchmark fell 12.45 points to 5,264.40.
Even largecaps came off their day's high - ICICI Bank, which rallied more than 2 per cent, slipped 0.2 per cent. Top lender State Bank of India cut its gains from 2.4 per cent to 1.5 per cent.
Tata Motors, country's largest commercial vehicle maker rose 2 per cent, and engineering and construction major Larsen & Toubro moved up 1.35 per cent.
Index heavyweight Reliance Industries climbed 2 per cent and state-owned oil & gas producer ONGC was up 1 per cent.
Shares of Sun Pharma, Coal India and Hero Motocorp topped the buying list, rising nearly 3 per cent.
In the second line shares, BASF surged 14 per cent. Abbott India, Rallis India, Gujarat Gas and Schneider Electric shot up 4-5 per cent while Max India, AstraZeneca, Edelweiss Capital, Apollo Hospital and Polaris Tech slipped 2-5 per cent.
Even the gap between advance and decline trimmed; about 795 shares gained while 588 shares declined.
At 12:42 hours IST: Sensex stays flat; Sun Pharma, Cipla, SpiceJet most active
The BSE Sensex stayed moderately higher due to consistent buying interest in banks, oil & gas, infrastructure and FMCG stocks. However, sharp fall Infosys post weak guidance for Q1 and FY13 has limited the major upside of the market.
The BSE benchmark was up 24.35 points at 17,356.97 and the NSE benchmark rose 14.55 points or 0.3 per cent to 5,291.40. The broader markets continued to outperform benchmarks - the BSE Midcap and Smallcap indices were up 0.9 per cent each.
Drug makers Sun Pharma (gained 2.6 per cent) and Cipla (moved up 0.6 per cent) were the most active shares on the BSE, with 17.3 lakh shares and 20.5 lakh shares, respectively. CNBC-TV18 reported quoting NewsWire18 sources that Sun Pharma may get US okay for diabetes drug Prandin generic. Sources say, the company may launch Prandin generic in US by June.
SpiceJet shot up 14 per cent and it was the most active too with 1.93 lakh shares. Aviation Minister Ajit Singh said group of ministers, in a meeting on February 9, had allowed 49 per cent FDI in aviation. He expects the note on 49 per cent FDI in airlines will go to cabinet very soon.
on Thursday in an interview with CNBC-TV18, Vikram Suryavanshi of Antique Stock Broking said SpiceJet would gain the most if direct FDI in aviation is permitted. SpiceJet is his preferred pick because of the company's clean balance sheet.
Shares of Reliance Industries, Tata Motors, ICICI Bank, State Bank of India and L&T shot up 1.5-3 per cent. ITC, HDFC Bank, HDFC, Bharti Airtel and HUL jumped 0.7-1.4 per cent.
However, shares of Infosys, country's second largest IT services exporter tumbled over 9 per cent as the company expects revenue growth (in terms of dollar) of 0-1 per cent for Q1FY13 and 8-10 per cent for FY13 as against market expectation of 2.5-4 per cent and 12-14 per cent, respectively. Peers Tata Consultancy Services and Wipro were down 4-4.5 per cent.
The market breadth was positive; about two shares gained for every share rising on the National Stock Exchange.
At 11:46 hours IST: Nifty at 1-week high of 5300; RIL, SBI, L&T, ICICI lead
The BSE Sensex extended gains led by further upside in Reliance Industries and ICICI Bank. State Bank of India and Larsen & Toubro too advanced further. Even the NSE Nifty touched the one week high, hitting the 5300 level. However, technology stocks retained their top position in the selling list, with the IT Index falling over 6 per cent.
Infosys crashed 9 per cent post the company declared lower than expected guidance for the first quarter and financial year 2012-13 while it managed to meet expectations for Q4 results. Software services exporter sees revenue growth (in terms of dollar) of 0-1 per cent for Q1FY13 and 8-10 per cent for FY13 as against market expectation of 2.5-4 per cent and 12-14 per cent, respectively. Othe two IT majors Tata Consultancy Services and Wipro were down 3-4 per cent.
The BSE benchmark gained 54.5 points at 17,387.10 and the NSE benchmark rose 25 points to 5,301.85.
Oil & gas producer Reliance Industries and engineering and construction company Larsen & Toubro jumped 1.8 per cent each.
Banks continued their gains for second consecutive session on Friday, with the BSE Bankex rising 1.8 per cent ahead of RBI monetary policy on April 17. Top lenders State Bank of India and ICICI Bank shot up over 2 per cent while rival HDFC Bank moved up 1 per cent. Housing Finance company HDFC went up 0.85 per cent.
Auto stocks too extended gains - Tata Motors, Hero Motocorp, Bajaj Auto and Maruti Suzuki surged 2.4-2.7 per cent while M&M rose 1.4 per cent.
Cigarette major ITC was up 1.5 per cent and top FMCG company HUL moved up 1.2 per cent.
The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices rising around 1 per cent. About two shares advanced for every share declining on the BSE.
SpiceJet was the most active with volume of 1.73 crore shares, which shot up 13 per cent as Aviation Minister Ajit Singh said group of ministers, in a meeting on February 9, allowed 49 per cent FDI in aviation and note on 49 per cent FDI in airlines will go to cabinet very soon.
At 10:40 hours IST: Sensex flat; banks up, IT Index tanks 6 per cent post Infy results
The BSE Sensex was completely lacklustre on Friday, even after strong global cues. Disappointing guidance by Infosys for FY13 dampened the sentiment of the market as well as technology sector, but the upside in banks, oil & gas, infrastructure and auto stocks was supporting the market trade moderately higher.
The BSE benchmark climbed just 32 points to 17,364.24 led by 27 components. Meanwhile, the NSE benchmark was up 16 points at 5,292.90.
Asian markets like Hang Seng, Nikkei and Taiwan Weighted moved up 1.2-1.6 per cent, tracking rally in US and European markets on Thursday. Straits Times and Kospi gained 0.6-0.9 per cent while Shanghai rose just 0.2 per cent. The US equity markets rose 1.4 per cent on Thursday on the back of better than expected Italy auctions and strong expectations of China's Q1 GDP, which came in at 8.1 per cent versus estimate of 8.3 per cent.
Back home, earnings season kicked off with Infosys numbers for the fourth quarter of FY12. Company met expectations for Q4, but it made investors nervous with its guidance for financial year 2012-13. Second largest software services provider is expecting revenue growth of 8-10 per cent in FY13 while street had expected at 12-14 per cent.
The stock plunged nearly 9 per cent to Rs 2,506.75 a share while its rivals TCS and Wipro were down 3-4 per cent. The BSE IT Index tanked 6 per cent.
However, the BSE Auto, Power, FMCG, Capital Goods, Realty, Bank, Healthcare, Oil & Gas and Metal indices were up 1-1.75 per cent.
Country's largest lenders State Bank of India and ICICI Bank rose nearly 2 per cent ahead of RBI policy, which scheduled to be announced on April 17. Experts feel the RBI may consider rate cut of 25 basis points.
At 9:19 hours IST: Sensex up 37 pts; Infy falls 9 per cent on weak FY13 guidance
The BSE Sensex started off trade with more than 50 points gap down due to Infosys' disappointing FY13 guidance, but strong global cues helped the market turned positive immediately.
Infosys, software services provider met expectations for fourth quarter of FY12, but it has disappointed the street by its guidance for financial year 2012-13. The company posted net profit of Rs 2,316 crore, a fall of 2.4 per cent QoQ while the revenue growth for FY13 expected to be 8.10 per cent versus expectations of 12-14 per cent. The stock opened with a fall of 11 per cent or Rs 300 while rival TCS dropped 5 per cent. Wipro and HCL Tech fell 2.5 per cent. Tech Mahindra was down 1.5 per cent.
The BSE benchmark was up 37.34 points at 17,369.96 and the NSE benchmark rose 15.4 points to 5,292.25.
However, ITC, Tata Steel, NTPC, IDFC, Coal India, SBI, HDFC Bank, ICICI Bank and Reliance Industries gained.
About two shares advanced for every share falling on the National Stock Exchange.
In the second line shares, MT Educare (listed on Thursday) shot up 5 per cent, which had rallied 13 per cent on Thursday.
Nagarjuna Oil Refinery surged 5 per cent. Kingfisher and 3i Infotech were up 1.5 per cent. Unitech rose 2 per cent.
DCB gained nearly 2 per cent ahead of Q4 numbers on Friday.
Comments
0 comment