Sensex ends below 27,000

IT shares were the top losers along with FMCG and pharma majors

Benchmark share indices lower on Monday weighed down by IT majors even as metal stocks rallied tracking global commodity prices.

The 30-share Sensex provisionally ended down 167 points at 26,912 and the 50-share Nifty ended down 46 points at 8,144.

Infosys and TCS were the top losers along with FMCG and select pharma majors.
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(updated at 2:30PM)
Benchmark share indices continued to trade in negative terrain weighed by information technology majors Infosys and TCS even as metal shares extended gains amid rising global commodity prices.]

At 2:30PM, the 30-share Sensex was down 156 points at 26,923 and the 50-share Nifty was down 41 points at 8,149.

In the broader market, the BSE MidCap index and the SmallCap index were trading with marginal losses. Market breadth was weak with 1,393 losers and 1,255 gainers on the BSE.

Meanwhile, the government will release CPI data for September 2015 and IIP data for August 2015 later today.

BSE IT index was the top loser down 1.6% along with Healthcare index down 1.2%. Metal and Power indices were up 1% each.

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.

Infosys was down 2.7% while TCS eased 1.4% and Wipro was down 1.4%.

In the metal pack Vedanta was up 6%, Hindalco surged over 5% and Tata Steel was up 1%.

Other Sensex gainers include Reliance Industries, ICICI Bank and L&T among others.

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(Updated at 1:50PM)
continue to trade rangebound on the first session of the week as investors remain on their toes as the Earning season kicked off with IT giant Infosys posting a mixed bag quarter with strong revenue growth and profitability along with some weakness ahead after it cut its revenue guidance for the full year.

By 1:50 pm, the Sensex was down by 44 points at 27,035 and the Nifty lost 8 points at 8,182. The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3%. Markets breadth is positive on the BSE with 1,382 advances and 1,177 declines.

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.

MACRO-ECONOMIC DATA

The government is scheduled to unveil the consumer price index (CPI) data for the month of September 2015 after market hours today. The all-India general CPI inflation was nearly flat 3.66% in August 2015 compared with 3.69% (revised) reading in July 2015.

The government will also release the industrial production data for August 2015 after market hours today, 12 October 2015. Industrial production rose at 4.22% in July 2015 compared with growth of 4.36% in June 2015.

STOCK TRENDS

On the sectoral front, BSE IT, Teck, FMCG and Healthcare indices are trading lower up to 1.5%. However, BSE Metal, Power, Capital Goods, Auto indices are trading higher up to 2.5%.

Shares of metal companies continued trading higher for six straight trading days with CNX Metal index rising more than 10% on the back of surge in global commodity prices.

Vedanta, Jindal Steel and Power and Hindalco Industries were trading higher by more than 5% each, while NMDC, Tata Steel, Bhushan Steel and Steel Authority of India (SAIL) up 2%-4% on the National Stock Exchange (NSE). Most of these stocks have rallied in the range of 10% to 35% in past six trading days. 

Tata Steel 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. The stock is up 3.6%.

Oil prices climbed in Asia today boosted by a weaker dollar and expectations that a rise in demand will ease a global supply glut, while investors await the release of key Chinese economic data this week. ONGC, RIL, Cairn India have gained between 1-2%.

Shareholders of car maker Maruti Suzuki India have approved a proposal to raise foreign institutional investors (FII) limit in the company to up to 40% from the current 24%. The stock is trading with marginal gains.

Hero MotoCorp sold 300,000 motorcycles valued at Rs 1,500 crore in 10 months of a tie-up with online marketplace Snapdeal. The stock is up 0.5%.

Capital Goods majors L&T and BHEL are trading higher by 1% and 3% each ahead of the IIP data due to be released today.

FMCG majors ITC and HUL are trading lower by 1% on caution ahead of the CPI numbers due to be unveiled later today.