Sensex falls 310 pts on Infosys results and high inflation

Mumbai, Apr 15 (PTI) India's Bombay Stock Exchange Sensex
fell 310 points to 19,386.82 on lower-than-expected Infosys
results for the fourth quarter, while higher-than-projected
inflation numbers further fuelled investor fears of hike in
interest rates.
Infosys Technologies, which has the second heaviest
weightage in the 30-share BSE index, was the top loser from
the Sensex pack, falling 9.59 per cent and dragging down the
index by nearly 195 points.
The company's consolidated Q4 net profit growth of 13.62
per cent was below market expectations, analysts said.
Besides, rise in inflation to 8.98 per cent in March,
from 8.31 per cent in the previous month impacted the market
sentiment negatively.
The Bombay Stock Exchange Sensex moved between 19,700.96
and 19,337.12 before concluding the day at 19,386.82, a net
loss of 310.04 points or 1.57 per cent.
In the previous session, it had gained 434.32 points or
2.25 per cent.
The NSE 50-share Nifty also tumbled by 86.95 points or
1.47 per cent to 5,824.55.
Besides Infosys Tech, other counters like Wipro, DLF,
ICICI Bank, HUL, HDFC, TCS and Maruti Suzuki contributed to
the Sensex fall.
"Early market sentiment was affected by tepid results
from IT bellwether Infosys. Muted FY12 guidance from Infosys
sent the IT stocks reeling downwards," said Bonanza Portfolio
Ltd's Senior Research Analyst (Equity) Shanu Goel.
"Selling was further fuelled by comparatively higher
monthly inflation data for March. Inflation, nearing 9 per
cent, had a negative impact on the interest rate sensitive
stocks like banks and real estate stocks," Goel added. Besides, most Asian stocks declined after latest Chinese
data showed an acceleration in inflation, making monetary
policy-tightening more likely. The key benchmark indices in
Japan, Hong Kong, South Korea, Singapore and Taiwan ended
lower by 0.02 per cent to 0.96 per cent.
European shares moved in a narrow range in their early
trade, with key benchmark indices in Germany and UK up by 0.15
per cent and 0.22 per cent, while France's CAC was down by
0.43 per cent.
Among the sectoral indices, BSE-IT fell by 6.40 per cent,
BSE-TECK (4.78 pc), BSE-Realty (1.22 pc), Bankex (0.95 pc) and
BSE-Power (0.87 pc).
Other major losers from the Sensex pack were Wipro (5.04
pc), DLF (2.43 pc), ICICI Bank (2.37 pc), HUL (1.83 pc), HDFC
(1.59 pc), TCS (1.52 pc), Maruti Suzuki (1.51 pc), Reliance
Infra (1.43 pc), RCom (1.42 pc), Jindal Steel (1.30 pc), NTPC
(1.28 pc) and Tata Motor (1.19 pc).
However, Hero Honda shot up 5.52 per cent, Bharti Airtel
- 1.35 per cent and Bajaj Auto - 1.06 per cent.
The total market breadth turned negative as 1,601 stocks
ending with losses, while 1,300 stocks finishing with gains at
BSE. The total turnover firmed up further Rs 3,760.44 crore
from Rs 3,394.40 crore on Wednesday.