Markets end lower dragged by Infosys

Benchmark share indices ended lower on Thursday, shrugging of better-than-expected November industrial production data, with Infosys leading the decline after the software major cut its dollar revenue growth guidance for fiscal 2012 because of the debt crisis in Europe.

The 30-share Sensex provisionally ended down 102 points at 16,073 and the 50-share Nifty ended down 16 points at 4,845.

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(Updated at 14:53hrs)

Stock markets continue to remain weak, but have managed to recover some losses in late trades as gains in financials helped offset some of the losses in technology shares.

At 1430 hours, the Sensex was down 90 points at 16,085 levels and the S&P CNX Nifty was at 4,838, lower by 23 points.

On the macro economic front, the industrial production growth came in at 5.9% for November, 2011, after witnessing a contraction of 4.74% in the previous month.

Further, food inflation for the week ended December 31, 2011 came in at -2.9% compared to -3.36% during the previous week.

Software technology shares fell after Infosys cut its dollar revenue guidance for fiscal 2012 and guided a flat dollar revenue growth for the fourth quarter (Jan-Mar). The software major’s Oct-Dec surged up 24.5% to Rs 2,372 crore quarter-on-quarter- better than analysts' expectations. But the company cut its FY12 dollar revenue guidance to 16.4% as against earlier guidance of 17.1-19.1%. The BSE IT index has shed 5.4% or 317 points at 5,515 levels.

Among the other sectoral indices, Teck and oil & gasstocks are also under the  selling pressure.

At the same time, BSE Banking index- Bankex is the top sectoral gainer, up 1.2% to 10,264 levels. Metal, Power, PSU, Consumer Durables, Realty, FMCG and Auto indices are also trading on a firm note.

Infosys is the top Sensex loser down nearly 8% to Rs 2,606. TCS another stalwart of the IT industry is also trading lower by nearly 4.3% at Rs 1,088.

Among other Sensex shares, Wipro, Reliance Industries, BHEL, Larsen & Toubro, ONGC, Sun Pharma, Cipla, Tata Motors, Jindal Steel and Mahindra & Mahindra are also among the notable laggards.

Financial shares gained on hopes of a possible reduction in cash reserve ratio by the central bank. State Bank of India is the top gainer, up 2.2% to Rs 1,764 after the bank said it's non-performing assets are under control after remedial measures taken. HDFC and HDFC Bank were both up 1% each after HDFC reported 10.1% increase in net profit at Rs 981 for the quarter ended December, 2011. In the same period a year ago it was Rs 891 crore.

The broader markets are trading on a flat note. The BSE mid-cap index is up 10 points at 5,516 and the small-cap index is up 3 points at 6,079 levels.

The overall market breadth is neutral as 1,317 stocks are declining while 1,308 stocks are advancing.Marginal recovery seen in late trades

Stock markets continue to remain weak, but have managed to recover some losses in late trades as gains in financials helped offset some of the losses in technology shares.

At 1430 hours, the Sensex was down 90 points at 16,085 levels and the S&P CNX Nifty was at 4,838, lower by 23 points.

On the macro economic front, the industrial production growth came in at 5.9% for November, 2011, after witnessing a contraction of 4.74% in the previous month.

Further, food inflation for the week ended December 31, 2011 came in at -2.9% compared to -3.36% during the previous week.

Software technology shares fell after Infosys cut its dollar revenue guidance for fiscal 2012 and guided a flat dollar revenue growth for the fourth quarter (Jan-Mar). The software major’s Oct-Dec surged up 24.5% to Rs 2,372 crore quarter-on-quarter- better than analysts' expectations. But the company cut its FY12 dollar revenue guidance to 16.4% as against earlier guidance of 17.1-19.1%. The BSE IT index has shed 5.4% or 317 points at 5,515 levels.

Among the other sectoral indices, Teck and oil & gasstocks are also under the  selling pressure.

At the same time, BSE Banking index- Bankex is the top sectoral gainer, up 1.2% to 10,264 levels. Metal, Power, PSU, Consumer Durables, Realty, FMCG and Auto indices are also trading on a firm note.

Infosys is the top Sensex loser down nearly 8% to Rs 2,606. TCS another stalwart of the IT industry is also trading lower by nearly 4.3% at Rs 1,088.

Among other Sensex shares, Wipro, Reliance Industries, BHEL, Larsen & Toubro, ONGC, Sun Pharma, Cipla, Tata Motors, Jindal Steel and Mahindra & Mahindra are also among the notable laggards.

Financial shares gained on hopes of a possible reduction in cash reserve ratio by the central bank. State Bank of India is the top gainer, up 2.2% to Rs 1,764 after the bank said it's non-performing assets are under control after remedial measures taken. HDFC and HDFC Bank were both up 1% each after HDFC reported 10.1% increase in net profit at Rs 981 for the quarter ended December, 2011. In the same period a year ago it was Rs 891 crore.

The broader markets are trading on a flat note. The BSE mid-cap index is up 10 points at 5,516 and the small-cap index is up 3 points at 6,079 levels.

The overall market breadth is neutral as 1,317 stocks are declining while 1,308 stocks are advancing.