Sensex falls; Infosys, UK election results weigh
Global market sentiment took a hit after British elections left no single party with a clear claim to power ahead of talks to exit the European Union, sideswipe investors who had already weathered major risk events in the United States and Europe.business Updated: Jun 09, 2017 13:51 IST
Indian shares fell on Friday, with Infosys dragging benchmark indexes lower following a report its founders were preparing to exit the IT bellwether, while the prospects of a hung parliament in the UK also hurt sentiment.
Infosys was trading 1.62% lower, after falling as much as 3.5%, despite the company denying a Times of India report that said the company’s promoters were looking to sell their entire stake.
Global market sentiment took a hit after British elections left no single party with a clear claim to power ahead of talks to exit the European Union, sideswipe investors who had already weathered major risk events in the United States and Europe.
“The overhang of global cues will definitely be there on markets across the world,” said Devon Chokes, promoter, KKR Chokes Investment Managers.
Both the BSE and NSE indexes were headed for their first weekly fall in five. Analysts have been advising investors to be cautious in the near term after a record-breaking rally in the indexes over the recent past. Both the indexes had hit fresh record highs on Tuesday.
“That’s why investors are not pumping in money now at this stage, (but are) sitting on cash,” Chokes added.
India is due to post inflation data on Monday amid rising hopes for a central bank rate cut later this year.
The broader NSE Nifty was down 0.16% at 9,632.15 as of 0621 GMT, and down 0.29% for the week.
The benchmark BSE Sensex was 0.14% lower at 31,168.54 and down 0.34 for the week.
Infosys pulled down other IT stocks and the Nifty IT index fell as much as 1.68% to its lowest since May 18. Infosys lost 2.4% while Tech Mahindra Ltd fell 2.6%.
Meanwhile, embattled mobile carrier Reliance Communications continued its slide, falling as much as 3.2%. The company on Wednesday pushed back against Moody’s and Fitch, disagreeing with the ratings agencies’ downgrade.