Sensex dips 300 pts, caution ahead
Invest only in quality stocks to avoid slumpbusiness Updated: Apr 13, 2013 01:23 IST
Ignoring better-than-expected industrial production and consumer price inflation data, the Sensex recorded its biggest single-day fall since late February on Friday after lower-than-expected revenue guidance from Infosys raised concerns about the outlook for the software services exporting sector, even as experts advised cherry picking of value stocks in the wake of further downside.
The BSE benchmark index tanked 300 points, or 1.6%, to 18,243, while the NSE Nifty dipped 65.5 points, or 1.17%, to 5,529.
Experts said the market is yet to see its bottom and is likely to slide more, so retail investors, especially those with investment horizon of over two years, should invest only in quality stocks.
“Political uncertainty is still there and corporate earnings are expected to be weak so there is still some downside movement ahead for the market,” said Rajesh Jain, executive VP and retail research head, Religare Broking.
“We recommend value buying in these market conditions and recommend investors to concentrate on firms with strong balance sheets and robust corporate governance,” said Sanjeev Zarbade, VP, private client group research, Kotak Securities.
Wholesale inflation data due on Monday and its influence on RBI’s forthcoming policy review will set the tone for the coming week, said experts.
“The Sensex opened in the negative on highly disappointing numbers from Infosys,” said Zarbade.
As Infosys plunged 21% to Rs 2,295.5, its biggest single day fall since April 2003, markets ignored positive macroeconomic data like the 0.6% growth in the IIP against expectations of a marginal decline and fall in CPI-based inflation to 10.39% in March.
First Published: Apr 12, 2013 23:18 IST