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Software giant Infy delivers hard punch; Nifty tanks 66 points

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Press Trust of India Mumbai
Last Updated : Apr 12 2013 | 8:05 PM IST
IT giant Infosys' earnings debacle rattled the market today with the the benchmark CNX Nifty nosediving by a massive 66 points ignoring better-than- expected macro economic indications.
The Bangalore-based software firm delivered disastrous results which not only missed the Street expectations but also shocked investor fraternity by its lower revenue growth guidance for the full year (FY14), citing challenging global economic environment.
India's second-largest software services exporter, however, clocked a modest 3.3 per cent increase in net profit at Rs 2,394 crore in the fourth quarter ended March 31.
The dismal numbers unnerved market players and Infosys shares were pummelled. The stock posted its biggest fall since 2003 and closed with a massive 21.25 per cent cut at Rs 2,296.65. Under the impact of poor Infosys result and guidance, the sectoral CNX-IT crashed by a massive 845 points.
Besides disappointing outcome from Infosys, overnight sharp fall in US tech stocks amid downgrading of Microsoft stocks also weighed on the sentiment in domestic market.
Better-than expected industrial output (IIP) numbers for February and modest fall in March consumer price inflation to 10.39 per cent failed to perk up the market.

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Opening with a sharp gap-down, the market remained in the red and ended with hefty losses. However, FMCG, banking, energy, pharma stocks logged gains amidst mayhem and restricted further bloodbath.
Globally, Asian markets retreated on fresh concerns over global economic recovery and Cyprus bailout funding agreement despite Wall Street's record peaks. European shares extended losses ahead of eurozone Finance Ministers' meet.
The 50-share Nifty plummeted 65.45 points, or 1.17 per cent, to end at 5,528.55 over after hitting a low of 5,494.90.
Coal India, HCL Tech, TCS, Maruti, Ranbaxy, M&M, L&T, Tata Motors and Jindal Steel were among the top index losers. Notable gainers included JP Associates, Ambuja Cement, ITC, BPCL, Lupin, Asian Paint, SBIN, Dr Reddy's, HUL and UltraTech.
Turnover in the cash segment rose to Rs 11,025.78 crore from Rs 10,387.71 crore yesterday. A total of 5,000.02 lakh shares changed hands in 52,77,231 trades. Market capitalisation stood at Rs 61,56,162 crore.

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First Published: Apr 12 2013 | 8:05 PM IST

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