Indian shares fell 0.9 per cent on Thursday, led by export-driven software services companies after bellwether Infosys cut its outlook for revenue citing the debt troubles in Europe.
Sharply better-than-expected industrial output in November failed to bolster sentiment as the data, while providing a glimmer of hope for the battered economy, could allow the central bank to hold off on easing monetary policy.
Infosys fell 8.4 per cent to Rs 2,588.25, as investors braced for earnings downgrades by brokerages after the company trimmed its full-year revenue growth outlook for a second straight time.
The IT index fell 6.03 percent to its lowest close since late November.
It was Infosys’ biggest one-day percentage drop in nine months and dragged bigger rival Tata Consultancy Services down 4.2 per cent and third-ranked Wipro off 2.45 per cent.
The main 30-share BSE index ended down 0.86 per cent or 138.35 points at 16,037.51, with 10 of its components in the red.
“The industrial production numbers have always been very volatile,” said Sunil Sewhani, head of fundamental research at GEPL Capital. “So the market does not judge by its one-time rise.”
The 50-share NSE Nifty fell 0.61 per cent to 4,831.25, with 14 components in the red.
