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Sensex drops 293 points, Nifty trips below 10,400 as Infosys cracks 6%; IT stocks plunge

image The benchmark Sensex lost as much as 293.31 points to hit a day’s bottom of 33,899.34 on Monday. (Image: PTI)

Indian equity markets started on a weaker note on Monday on the back of negative global cues after the United States stroke missile attack on Syria following which oil prices went up triggering a downturn in investor sentiments. The benchmark Sensex lost as much as 293.31 points to hit a day’s bottom of 33,899.34 while the wider share indicator Nifty 50 slumped to a day’s low of 10,396.35, down by 84.25 points on Monday. Shares of India’s second-largest IT company Infosys Ltd were the biggest losers among the BSE Sensex components after the Bengaluru-based company announced its financial results for the quarter and the financial year ended 31 March 2018.

Shares of Infosys tanked 6% on Monday after the IT giant said that it had begun looking for buyers for Kallidus, Skava and Panaya firms which were acquired by Infosys during the tenure of former CEO Vishal Sikka. The stock of Infosys Ltd shed as much a 5.99% to a day’s low of Rs 1,099 on Monday. Other than Infosys, shares of Tata Motors, Wipro, Axis Bank, ONGC, State Bank of India fell up to 1.6%. BSE Sensex slipped 247.92 points or 0.73% to open at 33,944.73 while NSE Nifty tripped below 10,400-mark to 10,398.3, down by 82.3 points or 0.79%.

Going ahead in the week, the domestic market will be steered by the upcoming corporate earnings of companies such as TCS, IndusInd Bank, ACC etc. The macroeconomic data including the wholesale inflation numbers will also chart the market direction. Out of the sectoral indices of NSE, Nifty IT was the worst hit on Monday with shares of Infosys plunging the most followed by Wipro, down 2%; Tech Mahindra, down 1%.

Financial stocks led a drop on Wall Street on Friday as results from big banks failed to enthuse and fear of broader conflict in Syria further unnerved investors. The Dow Jones Industrial Average fell 122.91 points, or 0.5 percent, to 24,360.14, the S&P 500 lost 7.69 points, or 0.29 percent, to 2,656.3 and the Nasdaq Composite dropped 33.60 points, or 0.47 percent, to 7,106.65. U.S. equity index futures rose on Sunday as financial market trading resumed for the first time since the United States, Britain and France hit Syria with missile strikes in retaliation for a suspected poison gas attack.

Source: Financial Express