IT index weighs on markets, Sensex down 201 pts

After opening with a significant gap down opening due to the not-so-encouraging Infosys Q1 result, the BSE benchmark index has recovered some of its lost ground in the morning trades to touch a high of 18,583. The broader markets too are trading in the red with the smallcap index and the midcap index lost 0.4% outperforming as compared to the Sensex which is down 1%. Currently the Sensex is down 201 points at 18,520 and the Nifty shed 57 points at 5,558.

Among the sectoral indices, IT index is the top loser down nearly 4% followed by Realty, Metal and Auto indices losing 1% each. on the other hand, FMCG index continues to trade in the positive with a 0.8% gain. Oil & Gas and Health care gaining 0.3% and 0.1% are the only other indices in the positive territory.

In the IT index, of the total 10 scrips listed, nine scrips are in the red. The draggers here are heavyweight Infosys down 5% followed by Wipro, Mphasis, TCS and HCL Technologies losing 1-2%.

FMCG major, ITC up 1% is the top gainer among the Sensex scrips followed by ONGC, Bharti Airtel and Hindustan Unilever gaining 0.5-0.7%.

Apart from the IT scrips, the losers are Tata Motors, Hindalco,Jindal Steel, DLF, Sterlite,Bajaj Auto and Jaiprakash Associates losing 1-2%.

The market breadth is very negative. Of the total 2095 stocks traded on the BSE, 1272 stocks declined while 736 advanced.

Among other individual stocks, Essar Oil gained 2% in morning trades, in an otherwise weak market. The company reported a turnaround in Q1 net profit. On the back of robust refining margins, the company has reported a net profit of Rs 469 crore for the quarter ended June 30. The company had posted a loss of Rs 70 crore during the corresponding previous quarter.

On the other hand, CMC slipped 3% in morning trades after reporting a 25% drop in Q1 net  profit and Sintex Industries too lost 3% lower at Rs 173, extending its Monday's 3% fall, after reporting lower than expected consolidated net profit of Rs 94.58 crore for the quarter ended June 30, 2011.