Sensex down 76 points as IT shares slip; rail stocks buck trend
The benchmark Sensex on Thursday fell for the second straight session and ended over 76 points lower dragged down by domestic IT stocks after their global peer Cognizant lowered its full-year revenue guidance.business Updated: Aug 07, 2014 18:19 IST
The benchmark Sensex on Thursday fell for the second straight session and ended over 76 points lower dragged down by domestic IT stocks after their global peer Cognizant lowered its full-year revenue guidance.
Bucking the overall weak trend, shares of companies related to railways saw buying interest after the government yesterday approved FDI liberalisation in the sector.
The BSE Sensex index, which had lost 242.74 points in the previous session, fell 76.26 points, or 0.30%, to end at 25,589.01. Intra-day, it moved between 25,526.05 and 25,778.05.
Shares of IT majors Infosys (down 1.68%) and TCS (down 1.56%) fell after Cognizant's lower full year revenue guidance of at least 14% triggered concerns. It had earlier said sales will grow by 16.5% in 2014.
The 50-share NSE index Nifty dropped 22.80 points, or 0.30%, to end at 7,649.25. During the session, it shuttled between 7,630.40 and 7,708.95.
Stocks of companies engaged in railways-related businesses rallied after the Cabinet fully opened up the railway infrastructure segment.
Titagarh Wagons surged 1.03%, Kalindee Rail Nirman climbed 3.84%, and Texmaco Rail zoomed 4.49% among prominent gainers.
Moving ahead with the economic reforms, the Cabinet on Wednesday also cleared the long-delayed proposal for raising FDI limit in defence to 49%.
Shares of defence equipment makers such as Astra Microwave Products, BEML and Bharat Electronics initially moved up but succumbed to profit-taking at the fag-end.
Banking, realty, power, capital goods, healthcare, metal and FMCG sector stocks also came under selling pressure.
Overall, 16 out of 30 Sensex-based scrips fell and 14 finished higher.
A mixed closing in the other Asian markets and a lower opening of European markets on signs of deepening Ukraine crisis also dampened trading sentiments here, brokers said.
Oil & Gas, PSU and Consumer Durable scrips settled higher and cushioned the fall in broader markets.