 "Infosys drags markets lower")
Markets opened lower on Friday dragged by software shares after disappointing fourth quarter earnings from Infosys and lower growth guidance for FY14. At 9:40AM the 30-share Sensex was down 245 points at 18,297 and the 50-share Nifty was down 60 points at 5,534.
Infosys has posted flat quarter-on-quarter net profit growth at Rs 2,394 crore for the fourth quarter ended March 31, 2013. Quarterly profit rose just 1.1% quarter-on-quarter, even as the company won orders from customers including German automaker BMW. Infosys also gave a full year revenue guidance of 6-10% for FY14, compared with an industry guidance of 10-14%. It gave no EPS guidance.
Global markets
Despite the S&P 500's gain of 11.7% this year, investors have fretted about the pace of recovery, especially after last week's dramatically weak March payrolls report. The Dow Jones industrial average gained 62.90 points, or 0.42%, to close at 14,865.14. The Standard & Poor's 500 Index rose 5.64 points, or 0.36%, to 1,593.37. The Nasdaq Composite Index edged up 2.90 points, or 0.09%, to close at 3,300.16.
Asian shares were steady and the yen faced fresh lows on Friday as the Bank of Japan's liquidity injections and Wall Street's record-high close overnight continued to underpin investor confidence.
Since the BOJ pledged last week to inject about $1.4 trillion into the Japanese economy to end decades of deflation and achieve its target of 2% inflation, the dollar has gained about 6% against the yen to within striking distance of 100 yen, which was last reached in April 2009. Profit booking was seen in Japan after the recent surge and the Nikkei was down over 1% while Hang Seng, Shanghai COmposite and Straits Times were trading with marginal gains.
IT stocks tank
The BSE IT index slumped 9% on the back of sharp sell off in Infosys followed by Realty, Consumer Durables, Auto and Capital Goods indices. However, FMCG, Healthcare, Oil & Gas were among the gainers.
Shares of information technology (IT) companies are trading lower by 4-20% in early trades after Infosys said its consolidated revenues are expected to grow between 6-10%, a much below than Nasscom’s 12-14% industry growth expectations for the current fiscal 2013-14 (FY13-14).
Among the individual stocks, Infoys has tanked as much as 20% to Rs 2,340 on BSE. Wipro and Geometric has dipped 5% each at Rs 382 and Rs 99 respectively, followed by Hexaware Technologies (4% at Rs 78.45). Tech Mahindra, HCL Technologies, Mahindra Satyam and TCS are down in the range of 2.5-3% on BSE.
Auto majors such as Maruti Suzuki and Tata Motors which had gained recently witnessed profit taking and were down over 1% each. However, defensive shares bucked the weak trend with FMCG shares among the top gainers. ITC was up 1.7% at Rs 290 and Hindustan Unilever was up 0.7% at Rs 474.
In the oil and gas space, Reliance Industries was up 0.5% at Rs 775 and the ONGC was up 0.4% at Rs 308. Sun Pharma, Cipla, Dr Reddys Labs were among the gainers in the pharma space. In the broader market, the BSE Mid-cap and Small-cap were down 0.4% each.
The market breadth was weak with 668 losers and 344 gainers on the BSE
Infosys has posted flat quarter-on-quarter net profit growth at Rs 2,394 crore for the fourth quarter ended March 31, 2013. Quarterly profit rose just 1.1% quarter-on-quarter, even as the company won orders from customers including German automaker BMW. Infosys also gave a full year revenue guidance of 6-10% for FY14, compared with an industry guidance of 10-14%. It gave no EPS guidance.
Global markets
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In overnight trades, US stocks rose for a fourth straight day on Thursday, sending the Dow and the S&P 500 to new closing highs as positive data on the labor market and an encouraging retail outlook eased recent concerns about economic growth.
Despite the S&P 500's gain of 11.7% this year, investors have fretted about the pace of recovery, especially after last week's dramatically weak March payrolls report. The Dow Jones industrial average gained 62.90 points, or 0.42%, to close at 14,865.14. The Standard & Poor's 500 Index rose 5.64 points, or 0.36%, to 1,593.37. The Nasdaq Composite Index edged up 2.90 points, or 0.09%, to close at 3,300.16.
Asian shares were steady and the yen faced fresh lows on Friday as the Bank of Japan's liquidity injections and Wall Street's record-high close overnight continued to underpin investor confidence.
Since the BOJ pledged last week to inject about $1.4 trillion into the Japanese economy to end decades of deflation and achieve its target of 2% inflation, the dollar has gained about 6% against the yen to within striking distance of 100 yen, which was last reached in April 2009. Profit booking was seen in Japan after the recent surge and the Nikkei was down over 1% while Hang Seng, Shanghai COmposite and Straits Times were trading with marginal gains.
IT stocks tank
The BSE IT index slumped 9% on the back of sharp sell off in Infosys followed by Realty, Consumer Durables, Auto and Capital Goods indices. However, FMCG, Healthcare, Oil & Gas were among the gainers.
Shares of information technology (IT) companies are trading lower by 4-20% in early trades after Infosys said its consolidated revenues are expected to grow between 6-10%, a much below than Nasscom’s 12-14% industry growth expectations for the current fiscal 2013-14 (FY13-14).
Among the individual stocks, Infoys has tanked as much as 20% to Rs 2,340 on BSE. Wipro and Geometric has dipped 5% each at Rs 382 and Rs 99 respectively, followed by Hexaware Technologies (4% at Rs 78.45). Tech Mahindra, HCL Technologies, Mahindra Satyam and TCS are down in the range of 2.5-3% on BSE.
Auto majors such as Maruti Suzuki and Tata Motors which had gained recently witnessed profit taking and were down over 1% each. However, defensive shares bucked the weak trend with FMCG shares among the top gainers. ITC was up 1.7% at Rs 290 and Hindustan Unilever was up 0.7% at Rs 474.
In the oil and gas space, Reliance Industries was up 0.5% at Rs 775 and the ONGC was up 0.4% at Rs 308. Sun Pharma, Cipla, Dr Reddys Labs were among the gainers in the pharma space. In the broader market, the BSE Mid-cap and Small-cap were down 0.4% each.
The market breadth was weak with 668 losers and 344 gainers on the BSE