Market benchmark Sensex settled 175.40 points lower at 26,904.11 on Monday after surging over 225 points in early trade following a downward revision in Infosys dollar revenue forecast for the ongoing fiscal, which triggered a massive sell-off in the entire tech basket.
IT bellwether Infosys’ shares erasing all its early gains ended 3.88% down after it cut dollar revenue guidance for the financial year 2016 despite posting 9.8% rise in net profit to Rs 3,398 crore for the second quarter.
Consequently, IT index plunged 2.02%, while tech took a hit of nearly 1.85%.
Moreover, caution ahead of the key macroeconomic data, IIP and inflation, to be released later in the day too influenced market mood.
The 30-share Sensex after remaining in green zone briefly by surging 225 points at the outset slipped into the negative zone soon after Infosys announced results and dipped below the 27,000-mark to touch a low of 26,855.75.
The index finally settled 175.40 points down or 0.65% at 26,904.11.
The 50-issue Nifty also ended 46.10 points or 0.56% down at 8,143.60 after shuttling between 8,244.50 and 8,128.20.
Major BSE losers included Lupin, Cipla, Sun Pharma, TCS, Dr Reddy’s, Wipro, HDFC, Maruti Suzuki, Hero MotoCorp, ITC, Bajaj Auto, Axis Bank, HDFC Bank and Coal India.
Bucking the trend, metal stocks soared for the second day after Glencore said it would cut zinc output by a third, sparking a short-covering rally across the board.
Vedanta surged 7%, while Hindalco Industries rose 5.98%.
Besides, Bank of Baroda ended 3.02% down at Rs 176.80 after the CBI carried out searches of three locations in New Delhi in connections with alleged Rs 6,000 crore remittances sent from BoB to Hong Kong camouflaged as payments for non-existent imports.
The broader markets, however, saw some buying activity. The BSE mid-cap rose 0.15% and small-cap ended higher by 0.01%.
Meanwhile, other stock markets in Asia ended higher and European markets were trading lower in their morning deals.