Sensex Slides 1,100 pts, Nifty below 17,200; Infosys Tanks 6%

Key benchmark indices on Monday had a gap-down opening amid week global cues. At 09:17 IST, the Sensex was down 1,129.62 points or 1.94 per cent at 57209.31, and the Nifty was down 299.20 points or 1.71 per cent at 17176.50. About 950 shares have advanced, 1611 shares declined, and 142 shares are unchanged. Infosys and HDFC Bank tanked 6 per cent and 2.4 per cent, respectively, on disappointing Q4 earnings.

Tech M, HDFC, Wipro, HCL Tech,TCS, Axis Bank, Bajaj finserv, Kotak Bank and Axis Bank were the other top laggards on the Sensex, while Twere the only players in green.

On the flip side, Tata Steel, NTPC, ITC, PowerGrid, Nestle, ONGC, Cipla, M&M, and Bajaj Auto were the gainers on the Sensex and Nifty.

The broader markets also opened in the red. The BSE MidCap and SmallCap indices were down up to 1.4 per cent. Sectorally, Nifty IT index led losses, and fell over 3 per cent. Nifty Bank, Financials, and Realty were the other notable losers. On the other hand, Nifty FMCH, Auto, and Pharma pockets were largely flat.

Among other stocks, Indiabulls Real estate fell over 4 per cent. The company has raised Rs 8.65 billion (US$ 114 million) at Rs 101.10 per equity share through Qualified Institutional Placement.

Global cues remain weak amid the continued war in Ukraine and no hopes of resolution on the horizon as talks between Russia and Ukraine fail to make progress. Back home today, investors will monitor the wholesale-price index (WPI) reading for March that will be announced today. The retail inflation for the month had hit a 17-month high of 6.95 per cent from a year ago.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “In the near term, headwinds are getting stronger for the market. Globally, sentiments are negative with a Dollar index above 100, a 10-year yield above 2.8 percent, and the global economy is expected to weaken if the Ukraine war prolongs. Back home in India, Infosys results came worse than expected with rising attrition and weakening margins even though growth prospects appear bright. IT valuations may come under pressure dragging the index down. A clear trend in the market is the preference for value over growth. This trend and the outperformance of the mid-caps are likely to continue. Investors will get buying opportunities in these segments on declines”

Global Cues

Wall Street stocks finished lower while bond yields and the dollar rose on Thursday as investors worried about the potential for aggressive US policy tightening as other central banks around the world moved to reduce support. The Dow Jones Industrial Average fell 113.36 points, or 0.33 per cent, to 34,451.23 while the S&P 500 lost 54 points, or 1.21 per cent, to 4,392.59 and the Nasdaq Composite dropped 292.51 points, or 2.14 per cent, to 13,351.08.

Tokyo stocks opened lower on Monday in cautious trade, with few clues for the market following a holiday on Wall Street. The benchmark Nikkei 225 index was down 1.25 per cent, or 337.67 points, at 26,755.52 in early trade, while the broader Topix index slipped 0.87 per cent, or 16.46 points, to 1,879.85. Investors are closely watching China’s GDP data for the January-March quarter due during Tokyo morning trade hours, he added.

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