Sensex nosedives 297 pts, Infosys Nos add to MAT worries

Reeling under low foreign investor confidence, the benchmark BSE Sensex today fell 297 points to its lowest close in more than three months at 27,437.94 after IT behemoth Infosys shares tanked 6 per cent on disappointing earning numbers and guidance.
Heavy selling by foreign investors on persisting worries over the controversial tax issue amid sustained fall in rupee continued to put pressure on the markets.
Earlier in the day, on controversial tax issue faced by foreign investors, the CBDT said, claims coming under the ambit of DTAAs will be settled within a month of being filed.
Concerns of non-DTAA foreign investors, however, continue to weigh on sentiments.

On a sequential basis, Infosys' net profit fell 4.7 per cent in the March quarter, while revenue declined by 2.8 per cent, the company reported today.
Reacting to the news results, company's shares tanked 5.95 per cent and was the top loser on the Sensex, alone contributing over 150 points to the index's fall.

"Market started the day cautiously as seen in the last few days led with MAT issue and downgrading of earnings. During the last trading hours, huge correction from Infosys post Q4, shocked the market," Vinod Nair, Head of Fundamental Research at Geojit BNP Paribas.
Brokers said, forecast of a below-normal monsoon was also among the major factors behind the plunge.

The 30-share BSE index tumbled by 297.08 points or 1.07 per cent to 27,437.94, a level last seen on January 14, when it closed at 27,346.82. Intra-day, the gauge shuttled between 27,829.11 and 27,344.70.
This is the seventh fall in last eight sessions. On weekly basis, it has crashed by 1,004.16 points or 3.53 per cent.
On similar lines, the NSE Nifty dropped 93.05 points or 1.11 per cent at 8,305.25 after moving between 8,413.30 and 8,273.35, intraday.
Besides Infosys, other major on the Sensex included, Cipla, Sesa Sterlite, Hindalco, L&T, HDFC, Coal India, Axis Bank, Dr Reddy, GAIL, Hindustan Unilever and ICICI Bank.

Selling pressure was also seen in smallcap and midcap indices as they fell 2.66 and 1.62 per cent, respectively.