Infosys results weigh on markets

Infosys tanks 10%

Markets have opened in the red after IT major Infosys disspoints with its tepid quarterly numbers. The Sensex opened down 171 points at 17,311 and the Nifty started off 50 points down at 5,256.

Infosys reported a marginal decline of 1% in net profit at Rs 2,289 crore for the quarter ended June 2012. It was Rs 2,316 crore in the previous quarter ended March 31. The stock tanked 9% in the opening deals to open at Rs 2,257 as the result was not in-line with the street expectations.

The index of industrial production (IIP) figures for May 2012 and the quarterly results of TCS, both due later in the day, will determine the market’s mood as trade progresses.

Overnight, the Dow Jones industrial average lost 0.4 per cent, while the Standard & Poor's 500 Index ended flat.

Asian shares barely budged with all the markets in the red as the US Federal Reserve appeared to put-off taking more aggressive stimulus steps until economic conditions worsen. The major losers were Hang Seng down nearly 2% along with Taiwan Weighted, Nikkei and Shanghai Composite down nearly 1% each.

Back home, IT majors such as Wipro and TCS have also opened lower by 2% each in trades today. Among the other losers, Mahindra & Mahindra, Hindalco, Bharti Airtel, Sterlite Industries, Tata Motors, ICICI Bank, Larsen & Toubro, SBI, Tata Steel and Jindal Steel have also opened lower by 0.5-2% each.

On the other hand, Cipla, ITC, Hindustan Unilever, Dr Reddy's Labs, Hero MotoCorp, Maruti Suzuki, Reliance Industries and Sun Pharma are among the gainers, up 0.3-0.6% each.

On the sectoral front, the IT index has plunged 5% or 245 points to 5,398 levels. Tech, realty, bankex, capital goods, power, auto, consumer durables and metal indices have also opened lower by 0.5-4% each. Oil & gas, healthcare and FMCG indices have opened on a flat note.

The broader markets are also trading lower with the BSE mid-cap and small-cap indices slipping 0.3% each.

Overall breadth is negative as 756 stocks are declining while 462 are advancing.