Sensex down 25 points; Infosys plunges 4.7% ahead of Q2 earnings
In highly volatile trade, the BSE benchmark Sensex on Wednesday lost 25 points to close at fresh two- month low of 26,246.79, as IT stocks, particularly Infosys, were battered after Citigroup downgraded India's second largest software exporter, amid persistent fund outflows.business Updated: Oct 08, 2014 20:33 IST
In highly volatile trade, the BSE benchmark Sensex on Wednesday lost 25 points to close at fresh two- month low of 26,246.79, as IT stocks, particularly Infosys, were battered after Citigroup downgraded India's second largest software exporter, amid persistent fund outflows.
After opening in the negative zone at 26,229.67, the Sensex slipped further to touch the day's low of 26,150.09 on continued capital outflows, tracking weak global cues.
Buying in select blue-chip stocks wiped off early losses and the barometer rose to day's high of 26,338.31. It settled at 26,246.79, 25.18 points lower than its previous close, completing the third straight session of losses.
The NSE 50-share Nifty also moved down by 9.70 points or 0.12% to finish at 7,842.70.
Ahead of its July-September quarter earnings announcement, Infosys plunged 4.70%, the biggest loss among Sensex companies, after global financial services major Citigroup has downgraded the stock to 'neutral' from 'buy', dragging the BSE IT sector index by 3.44%.
Following the dip in the stock, the company's market value tumbled Rs 10,341.31 crore to Rs 2,09,607.69 crore. Wipro and TCS also lost 4.03% and 1.90% respectively.
Brokers said fresh buying in capital goods, refinery, metal, banking, power, realty and auto sectors mainly helped the market to cut short its early losses. Fall in crude oil prices in the global market also supported the late rebound.
"The large part of today's (Wednesday's) fall is due to under-performance in IT sector, but in the near term performance will depend on Q2 FY15 performance... Tracking the global cues, the markets today opened with a weak note and stayed subdued throughout the day.
"The weak German data, the IMF decision to cut the global growth and slight fall in the Chinese services data were the reasons for the global sell off. Also the starting of the domestic earnings season also kept away the investors from creating fresh open positions," Geojit BNP Paribas said.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 332.84 crore on Tuesday, as per provisional exchange data.