Infosys leads slide in IT stocks as indices lose 1%, follow global trend

 

Equity indices nursed losses for the second consecutive session on Tuesday as investors continued to dump information technology (IT), banking and fast moving consumer goods (FMCG) stocks amid a bearish trend in global markets. Unabated foreign fund outflows and the rupee dropping to another record low against the dollar added to the woes, traders said. The 30 share BSE Sensex opened on a weak note and fell 508.62 points or 0.94 per cent to end at 53,886.61. The broader NSE Nifty declined 157.70 points or 0.97 per cent to settle at 16,058.30. Infosys was the top laggard in the Sensex pack, slipping 2.33 per cent, followed by Nestle India, PowerGrid, HUL, M&M, HCL Tech and Kotak Mahindra Bank. Only three counters closed in the green NTPC, Bharti Airtel and Bajaj Finance, rising to 1.87 per cent.

Rate hike fears are back in focus in the global markets ahead of the release of CPI numbers. Inflationary pressures along with strong US jobs data would keep the Fed on the path of aggressive rate hikes. Demand concerns amid the rebound of virus cases in China compelled crude to trade lower,” said Vinod Nair, head of research at Geojit Financial Services. In the broader market, the BSE small cap and midcap indices dropped 0.52 per cent and 0.51 per cent, respectively. Among BSE sectoral indices, IT fell by 1.29 per cent, followed by teck (1.21 per cent), metal (1.16 per cent), auto (1.13 per cent), FMCG (1.03 per cent), bank (0.94 per cent), consumer discretionary goods & services (0.93 per cent) and capital goods (0.91 per cent). Telecom, utilities, power and realty ended higher. World stocks were under pressure on renewed concerns over policy tightening by central banks and its impact on global growth. Elsewhere in Asia, markets in Shanghai, Tokyo, Seoul and Hong Kong ended in the red. Bourses in Europe were also trading lower in the afternoon session. Wall Street had closed with losses on Monday. Meanwhile, international oil benchmark Brent crude fell 2.37 per cent to $104.6 per barrel.