Erasing initial gains, the BSE benchmark Sensex on Friday dropped 238 points as investors sold IT stocks after industry bellwether Infosys gave disappointing growth outlook for this fiscal amid weak trend in European markets.
Sensex plunged 238.11 points, or 1.37%, to 17,094.51 as heavyweight Infosys suffered hefty losses. The BSE 30-scrip index initially rose to 17,398.22.
Similarly, NSE 50-scrip index Nifty fell 69.40 point, or 1.32%, to 5,207.45, after touching a high of 5,306.75.
Infosys tumbled 12.61% to Rs. 2,403.30 following weak revenue guidance for 2012-13, while announcing the fourth quarter earnings result for the last fiscal. It pulled down the IT sector index, which suffered the most by losing 8.76% to 5,404.27, as well as the overall market.
Infosys said Q4 was a difficult quarter and it could not meet even the lower end of its estimate for the period.
Tata Consultancy Services dropped 5.47% and Wipro by 4.10%.
Of the 30 Sensex stocks, 17 declined and 13 ended in positive zone, including Reliance Industries.