Sensex down 342 pts, banking shares weigh on indices; Infosys down over 2%

Sensex down 342 pts, banking shares weigh on indices

Domestic equities started on a negative note on Friday, with the benchmark Sensex tumbling 341 points as negative global cues and concerns over the quarterly financial performance of IT firms hit investor sentiments.
 

The broader Nifty too declined in early trade while Asian markets fell amid fears of higher interest rates against the backdrop of a marginal rise in the latest US inflation numbers.
 

Falling more than 341 points or 0.51 per cent, the 30-share BSE Sensex was at 66,067.31 points. A total of 20 companies in the index, including Infosys and Axis Bank, dropped more than 2 per cent. The scrip of Infosys, whose September quarter results did not meet Street expectations, was trading at Rs 1,426.80 apiece.  Meanwhile, ten Sensex companies were in the green. The 50-share NSE Nifty dropped 84.25 points or 0.43 per cent to 19,709.75 points, with as many as 27 index constituents trading in the negative territory. 

Key Asian indices were in the red and Hong Kong's Hang Seng Index dropped more than 2 per cent.
 

US and European markets closed in the negative territory on Thursday amid inflation numbers coming in slightly higher than expected in the US. Sensex and Nifty too had declined.
 

"Expect gap down opening in the domestic markets after Infosys announced lower than expected FY24 earning guidance and September inflation in the US was marginally above estimates," Vikas Jain, Senior Analyst at Reliance Securities, said in a pre-market open note.
 

Rising US 10-year bond yield as well as fall in Asian markets impacted the domestic equities, he added.
 

Foreign Institutional Investors (FIIs) were net sellers on Thursday as they sold shares worth Rs 1,862.57 crore, according to data available with BSE.

Infosys shares decline over 2% after Q2 results

Shares of Infosys declined over 2 per cent on Friday, following the announcement of its September quarter results.
 

In mid-session trading, the stock fell 2.6 per cent to Rs 1,427.4 apiece on the NSE, while on the BSE, Infosys shares dropped to Rs 1,428, registering a decline of 2.5 per cent, making it the biggest laggard among Sensex shares.
 

Infosys reported a 3.1 per cent year-on-year increase in net profit to Rs 6,215 crore in the September quarter.
 

The company, a major player in the IT services market, competes with firms like TCS, Wipro, HCL Technologies, and others.

Its revenue increased by 6.7 per cent to Rs 38,994 crore for the just-ended September quarter.
 

While announcing the latest quarter results, Infosys CEO and MD Salil Parekh said, "We had our highest large deal value at USD 7.7 billion in Q2 spread across all verticals and geographies. This, in an uncertain macro-environment, is a testament to our ability to pivot and stay relevant to evolving client needs by delivering the benefits of transformation as well as productivity and cost savings at scale." Ahead of the announcement of the quarterly performance on Thursday, shares of the Bengaluru-based firm plunged 3 per cent.
 

Market experts attributed Thursday's sell-off in IT stocks to a lower-than-estimated performance by Tata Group's flagship firm Tata Consultancy Services announced a day earlier.