You are here: Home » Markets » News
Business Standard

Tech stocks drag Indian shares lower; Infosys hits 8-month low

The NSE Nifty 50 index fell 1.89% to 17,142.50, as of 0445 GMT, while the S&P BSE Sensex slid 2.15% to 57,089.44

Topics
Tech stocks | Infosys  | NSE Nifty

Reuters  |  BENGALURU 

Nifty, market, sensex, stocks, investors, growth
On Monday, top software services provider Infosys slumped 9.1% to an eight-month low.

Indian shares touched three-week lows on Monday, hammered by losses in IT stocks after crashed 9% on missing March-quarter profit estimates, while inflation concerns globally also weighed on investors' sentiment.

The 50 index fell 1.89% to 17,142.50, as of 0445 GMT, while the slid 2.15% to 57,089.44. In a holiday truncated week, both indexes logged weekly losses of more than 1.5% each, last week.

On Monday, top software services provider slumped 9.1% to an eight-month low.

The firm's consolidated net profit for the March quarter was 56.86 billion rupees ($744.24 million), lower than analysts' expectation of 59.80 billion rupees.

That dragged the Nifty's IT sub-index down more than 4%, making it the biggest decliner among major sub-indexes.

Last week, rival also slightly missed estimates. Its shares slid 3.5% to a one-month low on Monday.

"It was a weak set of numbers from and TCS also was a disappointment; the companies are under a lot of cost pressure and this will affect mid-cap stocks and we will see a valuation reset," said Saurabh Jain, assistant vice president at SMC Securities.

Mindtree was down 5% ahead of March quarter results.

Beyond IT stocks, India's top private-sector lender HDFC Bank extended losses to an eighth session, slipping 3.5% after it posted March quarter results over the weekend.

The bank's net interest margin, a key measure of profitability, contracted due to rise in share of corporate loans and slower growth in credit cards and auto loans, brokerage Jefferies said in a note.

Meanwhile, several in Asia and Europe were closed on Monday. U.S. equity futures, however, declined amid a rise in oil prices due to the deepening crisis in Ukraine. [O/R]

"Globally, inflation concerns continue to be on investors' minds; any new developments on the Russia-Ukraine situation would be a key deciding factor going forward," Jain added.

($1 = 76.4000 Indian rupees)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, April 18 2022. 13:25 IST
RECOMMENDED FOR YOU
.