Sensex ends 270 points lower, Nifty below 9,850 as Infosys cracks 9%

All that happened in Friday's trade

3:56 PM

Jayant Manglik, President, Retail Distribution, Religare Securities

 

Markets traded under pressure and lost over half a percent, pressurised by feeble global cues and slide in IT major Infosys. Sentiment was downbeat from the beginning on the news of terrorist attack in Spain and gloomy geo-political situation between the US and North Korea. On local front, the stock of Infosys witnessed sharp decline on the news of Vikas Sikka stepping down as CEO, which further added to negativity. 

 

Indications are in the favour of further slide, thus traders should add few shorts as hedge and give preference to PSU banks and pharma counters for fresh selling. Majority is facing issues due to volatility and we do not expect any relief from that front. Nifty has immediate support at 9,780 and any decisive fall below that mark will trigger fresh decline. 

3:56 PM

Sensex heatmap at close

Source: BSE

3:53 PM

Infosys posts its second highest turnover 

Infosys was the most traded counter on the National Stock Exchange (NSE) and BSE with the cumulative turnover of Rs 8,414 crore on Friday. A combined 90.34 million equity shares representing 3.9% of total equity of the company changed hands today.

 

Earlier, on December 8, 2014, Infosys had recorded a combined turnover of Rs 8,711 crore.

3:51 PM

Infosys top loser 

Infosys ended 9.6% lower, recording its sharpest decline since April 12, 2013 on closing basis. The stock hit 52-week low of Rs 884, down as much as 13.4% in intraday trade after Vishal Sikka resigned as the Managing Director (MD) and Chief Executive Officer (CEO) of the company with immediate effect. READ FULL REPORT HERE 

3:46 PM

Market breadth remains negative

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,534 shares declined and 1,002 shares rose. A total of 122 shares remained unchanged.

 

3:44 PM

Broader markets

The BSE Midcap index settled 0.1% lower, while BSE Smallcap index shed 0.5%. 

3:43 PM

Markets at close

The Sensex settled at 31,524, down 270 points, while the broader Nifty50 quoted 9,837, down 66 points at close.

3:30 PM

Vishal Sikka quits as Infosys CEO: Hits and misses of his 3-year journey CLICK HERE FOR FULL REPORT

3:29 PM

Dow futures

US equity futures signalled a weaker opening on Wall Street. Dow Futures were trading at 21,720, down 12 points or 0.06%.

3:26 PM

Equinomics' View on Infosys

 

Certainly it is  a negative development, no doubt.  However, our contention is that Infosys has already emerged as an institution. Company with an annual turnover of around Rs.60,000 crore with a net profit of over Rs.13,000 crore, can manage this kind of setback easily - this is our firm view. For such a large institution, in our view, it wouldnt bet difficult to attract a talent of high order

3:25 PM

European markets trade lower

 

The pan-European STOXX 600 index opened 0.9% lower. Losses were led by travel and leisure as investors reacted to the Barcelona attack by selling shares in airlines such as Ryanair, EasyJet and Spanish airport firm AENA.

 

France's CAC 40 has seen the widest sell off, falling 1.16% to 5,087.04. London's FTSE 100 was down 0.9% and Germany's Dax lost 0.84%.

3:23 PM

INDIGO STATEMENT ON CALCELLATION OF FLIGHTS

 

There is misleading information being spread by certain media on IndiGo’s flight cancellations. This is to clarify that our 8 Neos are grounded. Our schedule was planned in the month of June itself pertaining to non-availability of these aircraft for the month of July, August and September. The affected passengers have already been accommodated with suitable options

3:22 PM

Infosys stock outperforms TCS, Wipro during Sikka's tenure CLICK HERE FOR MORE

3:21 PM

Morningstar observations on mutual funds' trends in Infosys

 

Domestic fund managers have been pruning exposure to the Technology sector over the last year, due to tepid growth seen in the industry due to global headwinds as well as Rupee strength. Technology sector allocation across all funds on an aggregate basis has come down dramatically to 8% from 9.75% over the last 1 year. Infosys has been the favored stock from the tech space, with ~ 40% of the MF industry’s overall Technology sector allocations being made in Infosys.

3:01 PM

Geojit Financial Services on Vishal Sikka quitting Infosys as MD & CEO 

 

The resignation of Vishal Sikka triggered by “the continuous stream of distractions and disruptions over the recent months and quarters” is very unfortunate. The market has signaled its displeasure with the stock tanking by 7 % by 11. 30. The remark that “Vishal is more CTO material than CEO material” might have turned out to be the last straw.  This unfortunate incident might turn out to be an opportunity if the board quickly finds a new CEO who can lead from the front without disruptions from the promoters.

2:20 PM

Meghmani Organics bucks trend

 

Meghmani Organics hit a record high of Rs 74.70, surging 14% on the National Stock Exchange (NSE) in intra-day trade on Friday, in an otherwise weak market. READ MORE

2:05 PM

Markets check

 

At 2:00 am, the Sensex was trading at 31,429, down 366 points, while the broader Nifty50 was ruling at 9,804, down 100 points. 

1:54 PM

Infosys hits fresh 52-week low 

 

Infosys extended fall to slip nearly 13% to Rs 884, its sharpest fall since April 2013. 

1:02 PM

Sarabjit Kour Nangra, VP Research- IT, Angel Broking on Vishal Sikka's resignation

 

Vishal Sikka has resigned as the Chief Executive Officer & Managing Director of Infosys with immediate effect. While in near term it is a setback for the company; but given the strength of the board of the company, we believe that the company will overcome the setback. Given the valuations, we maintain our BUY rating with a price target of Rs 1,179.

12:49 PM

Infosys stock outperforms TCS, Wipro during Sikka's tenure

 

Despite the fall today that was triggered by Sikka’s resignation as MD & CEO and concerns across the information technology industry given the slowdown in revenue from the BFSI (banking, financial services and insurance) segments, H1-B visa related issues, automation etc, Infosys has managed to outperform peers since Vishal Sikka was announced the company’s MD & CEO on June 12 , 2014.

 

On an absolute basis, Infosys has gained nearly 29% at the bourses – from Rs 793 levels on June 12, 2014 to Rs 1,020 levels on Thursday – a day prior to Sikka’s resignation, ACE Equity data show. By comparison, the other information technology heavyweights – TCS and Wipro – gained around 11% and 8%, respectively during this period. 

Click here for full report

12:33 PM

Infosys extends losses

Infosys records sharpest fall in past 13 months, down over 9% in intraday at Rs 926. 
 

Earlier, on July 15, 2016, the stock tanked 11% in intra-day trade after the Infosys cut its revenue guidance for 2016-17.

12:27 PM

Shareholding pattern of Infosys

12:08 PM

Infosys Concall

Ravi Venkatesan: Will look both inside the company & outside for new CEO. Sikka will be available till the new management is in place.

12:07 PM

Infosys Concall

 

Vishal Sikka:Everyone on board asked me to reconsider my resignation but there were no indications that personal attacks would slow down.

12:06 PM

Infosys Concall

Vishal Sikka: Continuous drumbeat of allegations is 'sickening'  and that made it difficult to carry out changes. I Was constantly disturbed by the speculations & baseless allegations, they disrupted our productivity.

12:04 PM

Infosys Concall

Vishal Sikka: $100 mn clients have increased from  12 to 19 in last 3 years. For the first time in 5 yrs, Infosys beat TCS in margin and utilisation hit 10-year high

11:58 AM

Sikka resigns

In a new development, the board of directors blamed NRN Murthy for Sikka's resignation

"Mr. Murthy's continuous assault, including this latest letter, is the primary reason that the CEO, Dr. Vishal Sikka, has resigned despite strong Board support," the company said in a BSE filing.

Click here for BSE filing 

R Seshasayee and Vishal Sikka

11:32 AM

Market Check
 

Weakness in the market continued in the first hour of trade, as the Street digested news of Infosys MD & CEO Vishal Sikka stepping down with immediate effect.

 

At 11:30 am, the Sensex trading at 31573, down 222 points while the Nifty was at 9847, down 57 points. The market breadth was negative as 798 shares advanced against a decline of 1,340 shares, while 97 shares were unchanged.

11:16 AM

Should you sell Infosys shares post Sikka's resignation

 

Markets, analysts say were taken completely by surprise by the timing of the development that comes a day ahead of Board meet to consider the proposed Rs 13,000 crore buyback programme. The stock, they feel, has overreacted to the development and will bounce back soon.

 

“I am not surprised by the move given the pressure he has been going through, but I am shocked at the timing of his resignation. The development comes a day ahead of the Board meet to spell out the proposed buyback terms and all the shareholders were expecting some good news from the company management,” says G Chokkalingam, founder and managing director of Equinomics Research & Advisory.

Click here ror detailed story

10:58 AM

Emkay Global Financial extends gain post Q1 results

 

Emkay Global Financial Services hit a fresh 52-week high of Rs 208, up 5% on BSE in intra-day trade, surging 22% in past four trading sessions, after the company reported a strong set of numbers for the quarter ended June 2017 (Q1FY18). The stock was trading at its highest level since February 2008.

 

The consolidated net profit of the company in Q1FY18 has jumped more than five-fold at Rs 8.17 crore against Rs 1.60 crore in an year ago quarter. The revenues from operations grew 66% to Rs 35.52 crore from Rs 21.43 crore in the corresponding quarter of previous fiscal year.

Click here for detailed report

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