Markets continue to trade in the red on the back of disappointing Infosys numbers coupled with weakness in Asian markets. At 11:50am, The BSE Sensesx lost 225 points at 17,264 and the Nifty was down 62 points at 5,244.
In the broader markets, the midcap and the smallcap indices lost 0.6% each as compared to the Sensex down over 1%.
Asian shares were in the red as the US Federal Reserve appeared to put off taking more aggressive stimulus steps until economic conditions worsen, offering investors few reasons to take risks with second-quarter earnings painting a globally gloomy picture. Hang Seng, Nikkei,Kospi Composite, Taiwan Weighted and Jakarta Composite down 1% each.
The country's industrial production grew at a higher-than-expected pace of 2.4 percent in May driven by manufacturing output, government data showed on Thursday.
Along with June wholesale price inflation, scheduled for Monday, the notoriously volatile IIP data could be instrumental for the Reserve Bank of India to take a call on the rate cuts at a policy review on July 31. Here's what experts had to say.
Back home among the sectoral indices, IT index lost over 5% and was teh top loser followed by Realty, Consumer Durables and Bankex down 0.7-1%.
IT index was dragged lower as Infosys lost over 8% after its disappointing Q1FY13 numbers along with Wipro down 4% extending its Wednesday’s 2% fall, on reports that General Motors, the world’s second largest auto maker, which outsources 90% of its IT requirement, is planning to slash this to merely 10% over the next three years. TCS lost 2%
The other notable losers on the Sensex were Mahindra & Mahindra down 1.4% on turning ex-dividend, Bharti Airtel, Sterlite, L&T, HDFC Bank, NTPC, Tata Motors and Jindal Steel down 1% each.
Sensex gainers were Hindustan Unilever, ONGC, Hero MotoCorp, Gail India and Cipla up 0.4-1%.
Shares of JSW Steel and Mahindra & Mahindra were down over 1% each after both stocks were traded ex-dividend from today.
Auto maker M&M had announced a dividend of Rs 12.5 a share while steel major JSW Steel paid a dividend of Rs 7.5 a share.
Among other shares, Shriram City Union Finance has soared 9% to Rs 736, also its lifetime high, after the company said one of its promoters will acquire 17.9 million shares of the company at a maximum price of Rs 803 per share through inter-se-transfer.
The market breadth was negative. 1456 stocks declined while 882 stocks advanced on the BSE.
