You are here: Home » Markets » News
Business Standard

Market losses mount, Infosys pulls down Sensex

The IT sector as a whole faced the backlash of Vishal Sikka's surprise resignation as Infosys CEO

Press Trust of India  |  Mumbai 

Infosys headquarters in Bengaluru

Stocks on Monday made an early attempt to come out of the jolt but ultimately could not, as the lost 266 points and the cracked below 9,800 at the close amid a lower opening in

The IT sector as a whole faced the backlash of Vishal Sikka's surprise resignation as CEO. The software giant suffered more losses and was down 5.37 per cent, despite its Rs 13,000-crore share buyback announcement.

The stock was the biggest loser among blue-chips on both the key indices for yet another session, which fell for the second day. Investors turned skittish about joint military drills between the US and that kicked off on Monday, which may spark a toughening of its stand by North Korea.

The 30-share ended 265.83 points lower, or 0.84 per cent, at 31,258.85. The gauge had lost 270.78 points in the previous session on Friday.

The broader moved between 9,884.35 and 9,740.10, before ending down 83.05 points, or 0.84 per cent, at 9,754.35.

"The market failed to retain its opening strength due to continued pressure on the IT major (Infosys) despite a premium buyback announcement. Furthermore, pull-out of foreign funds and persistent miss in quarterly earnings led the market to consolidate," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

European shares turned lower after investors grew wary of US President Donald Trump's ability to carry forward his ambitious economic agenda after some high-level exits. Asian closed mixed.

Foreign portfolio investors (FPIs) gave shares a wide berth, net selling Rs 2,182.12 crore. Domestic institutional investors (DIIs) bought shares worth a net Rs 584.591 crore on Friday, provisional data showed.

Losses were also registered at the counters of Adani Ports, Dr Reddy's, Sun Pharma and ONGC, falling by up to 2.74 per cent. The ongoing turbulence at Infosys, India's second-largest IT exporter, continued to push down the BSE IT index, which slumped 2.04 per cent, followed by technology, PSU and health care.

Broader took more hits compared to the main indices, down by up to 1.45 per cent, as investors locked in profit.

First Published: Tue, August 22 2017. 00:32 IST