Sensex makes a U-turn, drops 165 points as investors hold back
- Author: Zachary Reyes Apr 13, 2017,
Apr 13, 2017, 20:27
"The bearish trend in the SGX Nifty, which was trading down by 28.5 point to 9,203.5, indicated that Nifty may open lower". Asian markets start off on a weak note with Japan's Nikkei falling over 200 points over weak global cues. The 30-share index resumed higher and hovered in a range of 29,838.82 and 29,549.74 before trading at 29,623.21 at 1131 hours, a loss of 165.14 points, or 0.55 per cent.
The rupee made good some of its losses by strengthening 30 paise to 64.37 against the USA dollar in early trade today on fresh selling of the American currency by banks and exporters.
The rupee weakness against the dollar fed negative mood.
"The benchmark indices opened marginally lower today tracking weak global cues.A Geopolitical risks is now pressurizing the market sentiments", Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS. Meanwhile, the US Dow Jones Industrial Average ended 0.29 per cent lower yesterday.
BSE consumer durables slipped 1.01 per cent, along with power, metal and PSU indices.
Country's largest IT software giant Infosys announced their Q4 results prior to market opening with weak results.
The stock of Infosys fell over 2 per cent in early market session.
The hardest hit is Tata Steel, which fell 2.12 per cent. Others that lost heavily include Adani Ports, Wipro, GAIL and Tata Motors.
On the other hand, IOC, Indiabulls Housing Finance, Bank of Baroda, BPCL and Sun Pharma gained 3.12 per cent, 2.17 per cent, 1.83 per cent, 1.62 per cent and 1.21 per cent, respectively.
Infosys expects 2017-18 revenue growth at 6.5-8.5% in constant currency, 6.1-8.1% in United States dollar terms. "On the CC (constant Currency), the revenues have remained flat QoQ", Sarabjit Kour Nangra, VP Research- IT, Angel Broking, said in a note on Thursday.
Shares of Infosys took the lead among top losers category trading at Rs 946.70 a piece down over 21 points or 2.26%. "This has clearly pushed up the asking quarterly rates it is reflecting clearly in their rather modest FY18 guidance".
The company will also pay up Rs 13,000 cr as dividend/share buyback - 20 per cent net worth of Infosys.