Sell-off in IT halts 2-day rally
TCS’ Q2 results dampened investor sentiment; Infy was biggest loser among Sensex stocks ahead of its quarterly results
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Profit Booking
♦ 14 of Sensex-30 constituents settling lower
♦ Sensex opened higher, touched a high of 66,577.60 in early trade, later fell to low of 66,342
♦ Nifty declined 17.35 pts or 0.09% to 19,794
♦ Nifty moved in 19,772.65-19,843.30 range
♦ Investors preferred to book profits
Mumbai: Equity benchmark BSE Sensex declined in a volatile trade on Thursday, reversing the two-session rally, mainly due to selling in IT and tech stocks. However, heavy buying in energy, metal and auto counters capped the losses, traders said. After swinging between gains and losses, The 30-share BSE Sensex declined 64.66 points or 0.10 per cent to close at 66,408.39 points, with 14 of its constituents settling lower and 16 advancing. The index opened higher and touched a high of 66,577.60 points in early trade but later fell to a low of 66,342.53 points.
The broader Nifty of NSE also declined 17.35 points or 0.09 per cent to close below the 19,800 level at 19,794 points. It moved in a range of 19,772.65-19,843.30 points during the session. Overall, the market breadth was positive as of the total 3,792 stocks traded, 2,168 shares advanced, 1,501 declined and 123 closed unchanged. As many as 284 stocks hit their 52-week highs, while 20 stocks hit the year’s low level. Analysts said selling in IT shares following mixed results by IT heavyweights TCS and Infosys dragged the key indices from the day’s high levels.
“The underwhelming result of the IT major and its lacklustre near-term prospects exerted downward pressure on the IT sector. Nevertheless, the broad market exhibited strength, primarily in anticipation of healthy overall Q2 results led by expansion in India’s operating profit as volume demand is sustained despite the global slowdown,” Vinod Nair, head (research) at Geojit Financial Services.
