Sensex posts steep 202-point fall, pulled down by Tata Consultancy Services
Mumbai: The benchmark Sensex on Friday plunged 202 points, dragged down by TCS, after robust earnings at the country's largest software services exporter failed to enthuse investors.
TCS contributed about 92 points to the drop in the Sensex, while ICICI Bank, HDFC Bank and Axis Bank also pulled it lower.
Also read: TCS ups hiring target to 55k
Wipro and HDFC were among the 18 Sensex stocks that fell.
Reliance Industries gave up gains of as much as 1.3 per cent to end 0.07 per cent lower ahead of its earnings announcement. Nine of the 12 BSE sectoral indices declined, led by IT, realty and bank shares.
The 30-share S&P BSE Sensex hovered in negative terrain for most of the day before closing down 201.56 points, or 0.95 per cent, at 21,063.62.
It was the second day of losses for the Sensex. Over the past five days, however, the index added 305 points, the biggest gain in four weeks.
The 50-share CNX Nifty on the National Stock Exchange dipped by 57.25 points, or 0.91 per cent, to 6,261.65.
Tata Consultancy Services late on Thursday declared a 50.3 per cent jump in December quarter net profit.
The company does not expect the domestic market to turn around before the September 2014 quarter because of the general elections.
"TCS was also down by over 5 per cent post its Q3 results as despite good results, its margins were lower quarter on quarter basis," said Rakesh Goyal, Senior Vice President at Bonanza Portfolio Ltd. "Telecom stocks continued the selling pressure from last trading day and traded weak."
"Indian markets ended the day on a weak note owing to decline in IT and banking majors led by TCS, HDFC and ICICI Bank. Markets also tracked the weak Asian markets, where apart from Hang Seng and Straits Times, other indices closed lower," said Jignesh Chaudhary, Head of Research at Veracity Broking Services.
Asian stocks showed a mixed trend as US bank earnings disappointed and investors waited for Chinese economic data due next week.
European stocks were higher in early trade as investors awaited reports on US housing starts and industrial output.
In the domestic market, the major Sensex losers were TCS, which dropped 5.77 pc, Wipro 3.15 pc, HDFC 2.58 pc, ICICI Bank 2.44 pc and Axis Bank 2.05 pc.
Bajaj Auto rose 1.37 pc, followed by BHEL 1.3 pc, Cipla 1.27 pc and Hindustan Unilever 1.27 pc.
Among the S&P BSE sectoral indices, IT fell 2.55 pc, followed by Realty 2.4 pc, Teck 2.28 pc, Bankex 1.57 pc and Consumer Durables 1.16 pc.
The market breadth remained negative as 1,780 stocks fell, 855 gained and 147 ruled steady. Total turnover rose to Rs 3,133.56 crore from Rs 2,003.89 crore yesterday.
Next: Rupee off one-month intra day high, drops 1 paisa to 61.54
Rupee off one-month intra day high, drops 1 paisa to 61.54
Mumbai: The rupee touched a one-month intra day high of 61.31 on Friday, only to surrender the gains and end one paisa lower at 61.54 against the dollar amid weak local equities.
It was the third successive day of consolidation for the rupee around the 61.53 level against the dollar.
However, the local currency gained for the second straight week, adding 36 paise since last Friday.
At the interbank foreign exchange market, the rupee opened at 61.50 a dollar from the previous close of 61.53 and climbed to a high of 61.3175 on dollar sales by exporters and an overnight fall in the US currency in the New York market.
Continued foreign fund inflows into local equities also supported the local currency in the initial stages.
However, a steep fall in local stocks on selling in IT shares after the announcement of Q3 results by TCS late yesterday and a strengthening US currency overseas pulled the rupee down to a low of 61.5775 before settling at 61.54, down by a mere one paisa.
The benchmark 30-share S&P BSE Sensex on Friday slumped by 201.56 points or 0.95 per cent.
Overseas investors bought local shares worth a net USD 90.74 million yesterday, as per Sebi data.
The dollar index was up 0.05 per cent ahead of US housing market and industrial output data releases.
"In the morning session, the rupee appreciated over quarter per cent, but in the second half it lost its gains as local equities closed almost 1 per cent down," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
