Sensex ends 270 points lower, Nifty below 9,850 as Infosys cracks 9%

All that happened in Friday's trade

3:56 PM

Jayant Manglik, President, Retail Distribution, Religare Securities

 

Markets traded under pressure and lost over half a percent, pressurised by feeble global cues and slide in IT major Infosys. Sentiment was downbeat from the beginning on the news of terrorist attack in Spain and gloomy geo-political situation between the US and North Korea. On local front, the stock of Infosys witnessed sharp decline on the news of Vikas Sikka stepping down as CEO, which further added to negativity. 

 

Indications are in the favour of further slide, thus traders should add few shorts as hedge and give preference to PSU banks and pharma counters for fresh selling. Majority is facing issues due to volatility and we do not expect any relief from that front. Nifty has immediate support at 9,780 and any decisive fall below that mark will trigger fresh decline. 

3:56 PM

Sensex heatmap at close

Source: BSE

3:53 PM

Infosys posts its second highest turnover 

Infosys was the most traded counter on the National Stock Exchange (NSE) and BSE with the cumulative turnover of Rs 8,414 crore on Friday. A combined 90.34 million equity shares representing 3.9% of total equity of the company changed hands today.

 

Earlier, on December 8, 2014, Infosys had recorded a combined turnover of Rs 8,711 crore.

3:51 PM

Infosys top loser 

Infosys ended 9.6% lower, recording its sharpest decline since April 12, 2013 on closing basis. The stock hit 52-week low of Rs 884, down as much as 13.4% in intraday trade after Vishal Sikka resigned as the Managing Director (MD) and Chief Executive Officer (CEO) of the company with immediate effect. READ FULL REPORT HERE 

3:46 PM

Market breadth remains negative

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,534 shares declined and 1,002 shares rose. A total of 122 shares remained unchanged.

 

3:44 PM

Broader markets

The BSE Midcap index settled 0.1% lower, while BSE Smallcap index shed 0.5%. 

3:43 PM

Markets at close

The Sensex settled at 31,524, down 270 points, while the broader Nifty50 quoted 9,837, down 66 points at close.

3:30 PM

Vishal Sikka quits as Infosys CEO: Hits and misses of his 3-year journey CLICK HERE FOR FULL REPORT

3:29 PM

Dow futures

US equity futures signalled a weaker opening on Wall Street. Dow Futures were trading at 21,720, down 12 points or 0.06%.

3:26 PM

Equinomics' View on Infosys

 

Certainly it is  a negative development, no doubt.  However, our contention is that Infosys has already emerged as an institution. Company with an annual turnover of around Rs.60,000 crore with a net profit of over Rs.13,000 crore, can manage this kind of setback easily - this is our firm view. For such a large institution, in our view, it wouldnt bet difficult to attract a talent of high order

3:25 PM

European markets trade lower

 

The pan-European STOXX 600 index opened 0.9% lower. Losses were led by travel and leisure as investors reacted to the Barcelona attack by selling shares in airlines such as Ryanair, EasyJet and Spanish airport firm AENA.

 

France's CAC 40 has seen the widest sell off, falling 1.16% to 5,087.04. London's FTSE 100 was down 0.9% and Germany's Dax lost 0.84%.

3:23 PM

INDIGO STATEMENT ON CALCELLATION OF FLIGHTS

 

There is misleading information being spread by certain media on IndiGo’s flight cancellations. This is to clarify that our 8 Neos are grounded. Our schedule was planned in the month of June itself pertaining to non-availability of these aircraft for the month of July, August and September. The affected passengers have already been accommodated with suitable options

3:22 PM

Infosys stock outperforms TCS, Wipro during Sikka's tenure CLICK HERE FOR MORE

3:21 PM

Morningstar observations on mutual funds' trends in Infosys

 

Domestic fund managers have been pruning exposure to the Technology sector over the last year, due to tepid growth seen in the industry due to global headwinds as well as Rupee strength. Technology sector allocation across all funds on an aggregate basis has come down dramatically to 8% from 9.75% over the last 1 year. Infosys has been the favored stock from the tech space, with ~ 40% of the MF industry’s overall Technology sector allocations being made in Infosys.

3:01 PM

Geojit Financial Services on Vishal Sikka quitting Infosys as MD & CEO 

 

The resignation of Vishal Sikka triggered by “the continuous stream of distractions and disruptions over the recent months and quarters” is very unfortunate. The market has signaled its displeasure with the stock tanking by 7 % by 11. 30. The remark that “Vishal is more CTO material than CEO material” might have turned out to be the last straw.  This unfortunate incident might turn out to be an opportunity if the board quickly finds a new CEO who can lead from the front without disruptions from the promoters.