Nifty ends below 8,150; Infosys cuts FY16 dollar revenue guidance

Infosys was the top loser after it lowered its FY16 revenue guidance. Further, August IIP and September CPI data will dictate the trend on Tuesday

Benchmark share indices ended lower on Monday, amid profit taking after sharp gains last week, with IT majors leading the decline after Infosys lowered its dollar revenue guidance for the current fiscal. However, metal stocks extended gains tracking gains in global commodity prices.

The 30-share Sensex ended down 190 points at 26,889 and the 50-share Nifty ended down 46 points at 8,144.

In the broader market, the BSE MidCap index ended up 0.2% and the SmallCap index ended flat. Market breadth ended weak with 1,440 gainers and 1,307 losers on the BSE.

"Markets have turned volatile and profit booking was seen on rallies. Infosys second quarter earnings were better than our expectations while the revenue guidance was also in-line," said Daljeet Kohli, Head of Research at IndiaNivesh Securities.

Meanwhile, the government is scheduled to unveil the Consumer Price Index for September and Industrial production data for August later today. Also, participants are eyeing the Bihar elections, whose outcome will set the tone for the market in future.

INFOSYS Q2 EARNINGS

In the quarter ended September 30, 2015, Infosys reported 9.8% growth in its net profit at Rs 3,398 crore when compared with the corresponding quarter the previous fiscal. The revenue at Rs 15,635 crore grew 17.2% on  year-on-year basis as it continued to attract business from clients in the US and Europe. On sequential quarter basis, the net profit grew 12.1% while revenues jumped 8.9%. In dollar terms, the company posted sequential revenue growth of 6%, the highest in the last 16 months.

The company also announced that CFO Rajiv Bansal will step down. Infosys announced a dividend of Rs 10/share. Shares of IT giant Infosys are off day's high and are trading lower by 2.5%. Following the tandem, TCS and Wipro have lost between 0.5-1%. TCS is due to post its results tomorrow.

BIHAR ELECTIONS

The first phase of voting for the 49 Assembly seats of Bihar commenced today. Reports suggest that over polling of over 33% was recorded till noon.

SECTORS & STOCKS

BSE IT index was the top loser down 2.1% followed by Healthcare and FMCG indices. However, Metal and Power indices were the top gainers.

Infosys ended down 3.9% after it lowered its dollar revenue guidance for the current fiscal. TCS and Wipro ended down 1-1.4% each.

In the FMCG pack, ITC and HUL ended down 0.3-0.7% each while from the pharma pack Lupin, Sun Pharma, Dr Reddy's Labs and Cipla ended down 1.4-2.1% each.

Metal shares extended gains tracking rise in global commodity prices. Vedanta and Hindalco ended up 6-7% each.

Tata Steel ended with marginal gians. The steel major sold 2.3 million tonne (mt) of steel in the second quarter ended September 30, 2015 up 11% from 2.1 mt it sold in the previous corresponding period.

ONGC and RIL gained 0.1-0.6% each. Oil prices firmed up amid weakness in the US  dollar.

Maruti Suzuki ended down 1%. Shareholders approved a proposal to raise foreign institutional investors (FII) limit in the company to up to 40% from the current 24%.

Hero MotoCorp ended down 0.7%. The auto major sold 300,000 motorcycles valued at Rs 1,500 crore in 10 months of a tie-up with online marketplace Snapdeal.

Capital Goods majors L&T and BHEL ended 0.4-1.7% each ahead of the IIP data due to be released today.

Among other shares, Bank of Baroda ended down 3% after the Central Bureau of Investigation (CBI) on Saturday carried out searches at the bank’s branches in New Delhi for alleged foreign exchange violations.

Ramco Systems ended up 4.5% after it announced that global conglomerate General Electric has implemented the company's HR & Payroll software across 10 countries in the Middle East.

Hindustan Construction Company gained 2.9% after the company announced that it has been awarded a prestigious contract worth Rs 942.58 crore from BARC.