The shares touched three-week lows on Monday, hammered by losses in IT stocks after Infosys crashed 9% on missing March-quarter profit estimates, while inflation concerns globally also weighed on investors’ sentiment.
Within an hour of trading, market capitalisation of all stocks listed on BSE fell to Rs 268.19 lakh crore from Rs 272.03 lakh crore last Wednesday
Mumbai:
Indian listed stocks eroded over Rs 3.83 lakh crore in value on Monday’s selloff as the NSE Nifty 50 index fell 1.89% to 17,142.50, in the morning trade , while the S&P BSE Sensex slid 2.15% to 57,089.44.
Within an hour of trading, market capitalisation of all stocks listed on BSE fell to Rs 268.19 lakh crore from Rs 272.03 lakh crore last Wednesday.
The shares touched three-week lows on Monday, hammered by losses in IT stocks after Infosys crashed 9% on missing March-quarter profit estimates, while inflation concerns globally also weighed on investors’ sentiment.
In a holiday truncated week, both indexes logged weekly losses of more than 1.5% each, last week.
On Monday, top software services provider Infosys slumped 9.1% to an eight-month low. The firm’s consolidated net profit for the March quarter was 56.86 billion rupees ($744.24 million), lower than analysts’ expectation of 59.80 billion rupees. read more
That dragged the Nifty’s IT sub-index down more than 4%, making it the biggest decliner among major sub-indexes.
Last week, rival Tata Consultancy Services also slightly missed estimates. Its shares slid 3.5% to a one-month low on Monday.
“It was a weak set of numbers from Infosys and TCS also was a disappointment; the companies are under a lot of cost pressure and this will affect mid-cap stocks and we will see a valuation reset,” said Saurabh Jain, assistant vice president at SMC Securities.
Mindtree was down 5% ahead of March quarter results.
Beyond IT stocks, India’s top private-sector lender HDFC Bank extended losses to an eighth session, slipping 3.5% after it posted March quarter results over the weekend.
The bank’s net interest margin, a key measure of profitability, contracted due to rise in share of corporate loans and slower growth in credit cards and auto loans, brokerage Jefferies said in a note.
Meanwhile, several markets in Asia and Europe were closed on Monday. U.S. equity futures, however, declined amid a rise in oil prices due to the deepening crisis in Ukraine.
“Globally, inflation concerns continue to be on investors’ minds; any new developments on the Russia-Ukraine situation would be a key deciding factor going forward,” Jain added.
Agencies