The benchmark BSE Sensex on Friday nosedived 297 points to its lowest in three-and-a-half months at 27,437.94 after IT major Infosys shares tanked 6% on lower-than-expected earning numbers.
On a sequential basis, Infosys' net profit fell 4.7% in the March quarter, while revenue declined by 2.8%, the company reported on Friday. Brokers said, continued capital outflows by foreign funds on tax claims despite government's clarification, muted earnings and forecast of a below-normal monsoon, were major factors behind the plunge.
Earlier in the day, on controversial tax issue faced by foreign investors, the CBDT said, claims coming under the ambit of DTAAs will be settled within a month of being filed.
Concerns of non-DTAA foreign investors, however, continue to weigh on sentiments. Moreover, weakness in the rupee, which also fell to a fresh three-month low of 63.60 (intra-day), had a negative impact. The 30-share BSE index tumbled by 297.08 points or 1.07% to 27,437.94, a level last seen on January 14, when it closed at 27,346.82.
Intra-day, the gauge shuttled between 27,829.11 and 27,344.70. This is the seventh fall in last eight sessions. On similar lines, the NSE Nifty dropped 93.05 points or 1.11% at 8,305.25 after moving between 8,413.30 and 8,273.35, intraday.
Besides Infosys, other major on the Sensex included, Cipla, Sesa Sterlite, Hindalco, L&T, HDFC Ltd, Coal India, Axis Bank, Dr Reddy, GAIL, Hindustan Unilever and ICICI Bank.
Sectorwise, the BSE realty index suffered the most by falling 3.85%, followed by consumer durables 3.18%, IT 2.78%, capital goods 2.57%, teck 2.33%, metal 1.65%, banking 1.33%, healthcare 1.09% and power 0.96%. Selling pressure was also seen in smallcap and midcap indices as they fell 2.66 and 1.62%, respectively.
Foreign Portfolio Investors sold shares worth Rs 276.83 crore, yesterday as per provisional data. Globally, a mixed closing at other Asian markets and a better trends at European markets influenced sentiment stemmed losses to some extent, brokers said.