Market trading flat, Infosys results disappoint

Markets were trading flat after gains in index heavyweight Reliance and bank shares helped offset huge losses in Infosys following disappointing results by the IT bellweather for FY13.

The Sensex was up 42 points 17,375 and the Nifty was up 21 points at 5,298.

The BSE IT index was the top loser. The Bombay Stock Exchange (BSE), IT index has plunged over 5%, compared to a marginal rise in the benchmark index Sensex at opening trades.

Infosys was the top Sensex loser after it reported 4.8% quarter-on-quarter (Q-o-Q) drop in its consolidated revenues at Rs 8,852 crore for the fourth quarter ended March 31, 2012 (Q4). Analyst expected revenues of Rs 9,124 crore from the India’s second largest software services exporter. (Read: Infosys's fall from grace)

“The year ahead looks challenging for the IT services industry, with slow recovery in the global markets,” said S. D. Shibulal, CEO and Managing Director.

Shares of information technology (IT) companies are under pressure after India’s second largest software services exporter, Infosys, reported disappointing set of financial numbers for the fourth quarter ended March 31, 2012.

Among other software stocks, TCS has slipped 5% at Rs 1,071, followed by Wipro (down 4%) and HCL Technologies (down 3%) on the BSE.

Among the sectoral indices which gained include, FMCG, Auto, Capital Goods and Bankex.

FMCG majors ITC and Hindustan Unilever were up 1-2% each ahead of the inflation data later today on hopes that inflation would ease further.

Rate sensitive shares from the bank and auto space gained on hopes of a rate cut by the central bank next week. Hero MotoCorp, MAruti Suzuki, Tata Motors were up nearly 2% each while ICICI Bank, HDFC Bank and SBI were the top gainers in the banking space.

In the capital goods segment, Larsen & Toubro and BHEL were both up over 1.5% each after February IIP data released Thursday showed that the capital goods segment showed a growth of 10%.

The market breadth on the BSE was positive with 963 gainers and 354 losers.