Infy result fails to cheer Sensex

This has been a dismal week for the Indian bourses despite a surprise bonus issue by Reliance Industries after a long gap of 12 years and Infosys posting better-than-expected results in the second quarter.

The Bombay Stock Exchange (BSE) Sensitive Index, or Sensex, lost 491.89 points, or 2.8 per cent, this week.

Today, the index started on a firm note, mainly due to IT bellwether Infosys’ results and positive global cues. The stock started the day in the positive zone and rose to a high of Rs 2,294. The scrip, however, pared gains and settled the day at Rs 2,178, down 1.49 per cent on weak overall sentiment after the company said a rising rupee was a concern.

US stocks ended with strong gains on Thursday. This was the fourth day of gains for stocks. Asian shares hit a new 14-month high on the back of investor optimism over the global economy. The Shanghai Composite Index surged 4.76 per cent and the Seoul Composite advanced 1.94 per cent.

The market breadth was negative. Out of 2,831 shares traded on the BSE, 1,792 declined, 968 advanced and 71 were unchanged.

Indian stocks fell, led by Mahindra & Mahindra, on the basis of reports in which billionaire investor Rakesh Jhunjhunwala said this year’s 72 per cent rally would falter within two months. The benchmark index exhibited volatility and moved in the range of 357 points throughout the day.

Among the BSE-30 stocks, Tata Motors plunged 6.66 per cent. Sterlite, Reliance Infrastructure, Grasim Industries, Mahindra & Mahindra , Maruti Suzuki and SBI declined 2-3 per cent.