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Markets slump as Infy lowers FY13 revenue guidance

Global cues, selling in IT stocks drag

SI Reporter  |  Mumbai 

Marjets continue to drag in mid-morning deals with the down 61 points at 18,744. Earlier in the day, the index had touched a low of 18,696. Nifty is down 13 points at 5,695.

This follows the second quarter FY13 numbers posted by IT major Infosys. The country’s second-ranked software services provider has lowered its revenue guidance  for the current fiscal 2013 in dollar terms. Earnings per American Depositary Share (EPADS) is expected to be at least $2.97 (Fiscal 2013 guidance given on July 12, 2012 was $ 3.03 which is reset at the current exchange rate at $2.97).

IT index has slumped 3.7% at 5,661. Infosys is down 6.7% at Rs 2360. Wipro, Hexaware, TCS, HCL Tech and Core Projects are down 0.3-1.7% each.

Meanwhile, the rupee today fell by 5 paise to 52.73 against the US dollar in early trade at the Interbank Foreign Exchange market, due to strengthening of the American currency overseas.
(Updated at 0936 hrs)

have opened on a soft note this morning, following cues from global mpeers. IT major, Infosys' results has also dampeened investor sentiments further. The is down 67 points at 18,738. Nifty is down 23 points at 5,685.

In Asia, stocks moved higher in morning trades, although gains were kept in check by some outsized losses for several firms, as Softbank Corp., Fast Retailing Co and Billabong tumbled. Nikkei, Hang Seng and Taiwan added 19-50 points each. At 700 hrs IST, the SGX Nifty was down six points at 5743.

Infosys has tanked 8% to Rs 2,325 in opening trades after the country’s second-ranked software services provider has lowered its revenue guidance  for the current fiscal 2013 in dollar terms. Meanwhile, the company has reported 3.5% quarter-on-quarter (q-o-q) growth in net profit at Rs 2,369 crore for the quarter ended September 2012, which was in line with street expectations. Analyst on an average had expected net profit of Rs 2,369 crore.

IT index has slumped 3.7% at 5,662 following the Infy numbers. consumer durables is up 0.5% at 7194. FMCG, healthcare, metal and oil & gas indices are also marginally in green.

Meanwhile, the broader have outperformed this morning. mid-cap index has added 0.4% at 6,699. Small-cap index is up 0.3% at 7,130.

Following Infosys, IT shares - Wipro and TCS have dropped 1-1.5% each. Tata Motors and Larsen & Toubro are also showing some weakness.

Meanwhile, Gail India has added 1.4% at Rs 380. Tata Steel, Cipla, Coal India and ITC are some of the other gainers in trades today.

market breadth is positive. Out of 1,577 shares traded, 969 have advanced while 559 have declined in trades.

Meanwhile, Everest Kanto Cylinder Limited, a leading player in high pressure seamless cylinders, has redeemed the entire obligation of $49.98 million towards its zero coupon foreign currency convertible bonds which matured on October 10. Shares of Everest Kanto are down 2% at Rs 32.80.

Dish TV has allotted Rs 30 crore for marketing campaign this year for a slew of new initiatives, coinciding with government decision to implement digitisation by October end in the four metros, a top company official said here today. Dish TV has gained 1.5% at Rs 78.85.

Suzlon Energy has slipped 1.5% at Rs 15.95 after it was caught in a debt default crisis after foreign bondholders rejected the company’s plea for a four-month extension of the redemption date.

JSW Steel said it may take government to court following a Coal Ministry decision to deallocate Gourangdih ABC coal mine, allotted jointly to the Sajjan Jindal-led firm and Himachal EMTA Power Ltd. Shares of JSW Steel is up 0.8% at Rs 780.

Unitech has jumped 2% at Rs 27.75 after its nominees hwithdrew from the Uninor Board "With immediate effect", and consequently,  all their special shareholder rights stand suspended.

First Published: Fri, October 12 2012. 10:32 IST