Sensex drops 297 points to end below 27,450; Infosys slumps 6%

Benchmark share indices ended over 1% lower on Friday with Infosys leading the decline after disappointing March quarter earnings while the guidance for the current fiscal was also lower than Nasscom estimates.

The 30-share Sensex ended down 297 points at 27,438 and the 50-share Nifty closed 93 points lower at 8,305.

"Technically the market is still looking weak and there are no positive triggers as of now. The Nifty can test the 200-DMA level of 8,250. Further, weak monsoon forecast is also a cause for concern. In the latter half of the session lower-than-expected fourth quarter earnings of Infosys dampened sentiment," said Alex Mathew, Head of Research, Geojit BNP Financial Services.

Market breadth on the BSE ended negative with 2,072 losers against 671 advances.    

In the broader market, the BSE Mid-cap slipped 1.6% and Small-cap indices ended down 2.7%.

Meanwhile, according to reports the Central Board of Direct Taxes has instructed Foreign Portfolio Investors claiming treaty benefits be settled within a month.

Sectors & Stocks

Except for FMCG which ended flat all sectoral indices on the BSE ended lower with Realty and Consumer Durables being the top losers down over 3% each.

Infosys was the top Sensex loser which ended down 6%. Net profit was down 4.7% at Rs 3,097 crore while revenue was lower by 2.8% at Rs 13,411 crore for the March quarter compared to the previous quarter. Further, the company expects FY16 revenue growth between 10 – 12% in constant currency terms, which is lower than the NASSCOM estimates of 12-14%. Among its peers, TCS ended up 2.2% while Wipro ended down 3.1%.

Index heavyweight, ITC ended up 1.2%. Media reports suggest that ITC is planning to set up four food processing parks with an investment of up to Rs 250 crore each in Tamil Nadu.

ONGC rose 2.7%. ONGC has agreed to conduct tests prescribed by upstream regulator DGH to confirm three key gas discoveries in its Krishna Godavari basin block to end a standoff that stalled its USD 8 dollar project.

According to media reports, GAIL has received approval from Haryana government department for laying of a 3.85-km gas pipeline within Old industrial area, Yamunanagar for supply of gas to its prospective customers in this area. The stock ended down 1.5%.

Bank shares ended lower on concerns that unseasonal rains would lead to severe crop damages as a result of which non-performing loans in the agri-segment would rise thereby hurting profits. HDFC Bank, ICICI Bank, Axis Bank and SBI ended down 0.3-2.8% each.

According to media reports, Tata Power is focusing on overseas projects as its 4,000 MW Mundra power plant in Gujarat remains stuck in a tariff dispute that has reduced its appetite for domestic projects. The stock ended down 1.5%.

Realty major DLF shed 3.8% on reports stating the Supreme Court has issued a notice on a plea by Sebi, challenging an order of its appellate authority, Securities Appellate Tribunal (SAT), in relation to the aforementioned company.

Among other shares, Shares of Symphony has dipped 20%, extending its 11% fall in past two trading sessions on the NSE, after Motilal Oswal Securities downgrade the stock with sell rating and target price of Rs 2,500.