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Sensex falls below 32,000

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Key benchmark indices extended fall in morning trade led by and At 10:30 IST, the barometer index, the S&P Sensex, was down 86.08 points or 0.27% at 31,951.30. The index was down 31.25 points or 0.32% at 9,860.45. The was currently trading below the psychological 32,000 level after falling below that level in early trade.

Key benchmark indices edged lower in early trade weighed by poor Q1 result of IT major

The S&P Mid-Cap index was up 0.11%, outperforming the The S&P Small-Cap index was down 0.3%. The fall in this index was higher than Sensex's decline in percentage terms.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,392 shares fell and 801 shares rose. A total of 98 shares were unchanged.

Overseas, most Asian stocks were trading higher in anticipation of US inflation data and earnings from some of the large banks, Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc.

In US, the Dow yesterday, 13 July 2017 closed at a record for the 24th time in 2017, as gains in the financial sector helped the broader market book modest gains. The Dow Jones Industrial Average, rose 20.95 points, or 0.1%, to close at 21,553.09. The S&P 500 index, gained 4.58 points, or 0.2%, to end at 2,447.83. The Nasdaq Composite Index finished up 13.27 points, or 0.2%, at 6,274.44.

US Federal Reserve Chairwoman Janet Yellen reiterated a dovish stance in her second day of congressional testimony yesterday, 13 July 2017. Yellen told a Senate Banking Committee yesterday, 13 July 2017 the federal-funds rate wouldn't need to rise significantly to get to a neutral policy stance.

Back home, Infosys advanced 1.4% after the company increased its revenue growth guidance in both dollar and rupee terms for FY 2018 at the time of announcing Q1 June 2017 results. Infosys' consolidated net profit fell 3.3% to Rs 3483 crore on 0.2% decline in revenue to Rs 17078 crore in Q1 June 2017 over Q4 March 2017. The results are as per International Financial Reporting Standards (IFRS) and was announced before market hours today, 14 July 2017.

The company expects its consolidated revenue to grow 7.1%-9.1% in dollar terms for the financial year ending March 2018 (FY 2018), which was higher than the revenue growth guidance of 6.1%-8.1% issued by the company at the time of announcing Q4 March 2017 earnings.

The company expects its consolidated revenue to grow 3%-5% in Rupee terms for FY 2018, based on the exchange rates as of 30 June 2017. This was higher than the revenue growth guidance of 2.5%-4.5% issued by the company at the time of announcing Q4 March 2017 earnings.

Vishal Sikka, CEO of Infosys said that the company's persistent focus on execution in Q1 was reflected in broad-based performance on multiple fronts - revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results.

The company's COO U B Pravin Rao commented that the company had broad-based growth across geographical and industry segments. The company's initiatives on operational discipline led to record levels of utilization and better realization during the quarter, he added.

Pharma shares gained. Aurobindo Pharma (up 4.18%), Cipla (up 1.23%), Dr Reddy's Laboratories (up 0.81%), Glenmark Pharmaceuticals (up 0.48%), Lupin (up 0.45%), Sun Pharmaceutical Industries (up 1.15%), Cadila Healthcare (up 0.79%) and Wockhardt (up 0.84%) rose. Alkem Laboratories (down 0.75%) fell.

GlaxoSmithKline Pharmaceuticals fell 0.66% to Rs 2,566 as the stock turned ex-dividend today, 14 July 2017, for dividend of Rs 30 per share for the year ended 31 March 2017. Before turning ex-dividend, the stock offered a dividend yield of 1.16% based on the closing price of Rs 2,582.95 yesterday, 13 July 2017.

Telecom stocks saw mixed trend. Bharti Airtel (up 0.91%), Idea Cellular (up 0.29%) and Reliance Communications (up 0.84%) rose. MTNL (down 1.39%) and Tata Teleservices (Maharashtra) (down 2.77%) fell.

Shares of Bharti Infratel rose 1.45%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 14 2017. 10:32 IST
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