Infosys jolt pulls down stock market performance
Stocks today made an early attempt to come out of the Infosys jolt, but ultimately could not as the Sensex lost 266 points and the Nifty cracked below 9,800 at the close amid a lower opening in Europe.
The IT sector as a whole faced the backlash of Vishal Sikka’s surprise resignation as Infosys CEO. The software giant suffered more losses, down 5.37 per cent, despite its Rs 13,000 crore share buyback announcement.
The stock was the biggest loser among blue-chips on both the key indices for yet another session, which fell for the second day.
Investors turned skittish about joint military drills between the US and South Korea that kicks off today, which may spark a toughening of stand by North Korea.
The 30-share Sensex ended 265.83 points lower, or 0.84 per cent, at 31,258.85. The gauge had lost 270.78 points in the previous session on Friday.
The broader NSE Nifty moved between 9,884.35 and 9,740.10, before ending down 83.05 points, or 0.84 per cent, at 9,754.35.
“Market failed to retain its opening strength due to continued pressure on the IT major (Infosys) despite a premium buyback announcement. Furthermore, pullout of foreign funds and persistent miss in quarterly earnings led the market to consolidate,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
European shares turned lower after investors grew wary of US President Donald Trump’s ability to carry forward his ambitious economic agenda after some high-level exits. Asian markets closed mixed.
Foreign portfolio investors (FPIs) gave shares a wide berth net selling Rs 2,182.12 crore. Domestic institutional investors (DIIs) bought shares worth a net Rs 584.591 crore on Friday, provisional data showed.
Losses were also registered at the counters of Adani Ports, Dr Reddy’s, Sun Pharma and ONGC, falling by up to 2.74 per cent.
The ongoing turbulence at Infosys, India’s second-largest IT exporter, continued to push down the BSE IT index, which slumped 2.04 per cent, followed by technology, PSU and healthcare.
Broader markets took more hits compared to the main indices, down by up to 1.45 per cent, as investors locked in profit.