Sensex ends 238 pts down on grim Infy outlook, Spain woes

13 Apr 2012

The BSE Sensex that was already hurt by Infosys got battered further in afternoon trade due to eurozone worries, taking a knock of 250 points on Friday. Even expectations of rising India's trade deficit in FY12 added fuel to the fire.

The BSE benchmark fell 238.11 points or 1.37%, to close at 17,094.51 and the NSE benchmark slipped 69.40 points to 5,207.45.

The market tried to stay moderately higher in the first half of trade today led by support from every sector barring technology. However, news of sharp increase in borrowings by Spain from ECB in March and China's slowest GDP growth since the first quarter of 2009 dampened the sentiment quite badly in the second half of trade. European markets like France's CAC, Germany's DAX and Britain's FTSE fell 0.5-1% while the Dow Jones futures dropped 60 points.

Back home, Infosys lost Rs 346.75 a share or 12.61%, to close at Rs 2,403.30 on the BSE today. Though the company met street expectations of its Q4 numbers, but guidance was disappointing for FY13.

The second largest software services provider reported a net profit of Rs 2,316 crore for the January-March quarter, up 27.4% year-on-year, but down 2.4% sequentially while CNBC-TV18 poll of analysts expected at Rs 2,290 crore. Infosys expects a revenue growth (in dollar terms) of 8-10% for FY12 and 0-1% QoQ for Q1 while analysts on average had expected Infosys to guide to a 12-14% growth in FY13 revenue and 2.5-4% in Q1.

At 14:59 hours IST: Sensex falls 250 pts on Spain worries; Infy sheds Rs 350/sh
The BSE Sensex stayed sharply lower as European markets took beating after the Spanish banks borrowed euro 316.3 billion in March from the European Central Bank, which was the highest ever amount till now while they borrowed euro 169.8 billion in February. Even the Chinese data came in lower than expectations - gross domestic product growth was at 8.1% in Q1 as against 8.9% in Q4 while market expected at 8.3%, which was the lowest since the Q1 of 2009. France's CAC, Germany's DAX and Britain's FTSE dropped 0.5-1% while IBEX (Spain) lost over 2%. Spain's 10-year bond yield went up by 1%.

Back home, The BSE benchmark fell 251 points to 17,081 and the NSE benchmark tanked 72 points to 5,202.

Shares of software services provider Infosys plunged 12.5% post lower than expected guidance for Q1 and FY13 by the company while its rival TCS was down 5.6% and Wipro tanked 4.5%.

All major banks turned negative - private sector lenders ICICI Bank and Axis Bank dropped 1.5% and 2.3%, respectively. Top lender State Bank of India was down 0.8%.
Engineering and construction company Larsen & Toubro slipped 0.8% while state-owned BHEL was flat.

However, Reliance Industries, India's most valued stock and cigarette major ITC gained 0.8% each.

Auto stocks stayed higher, though they came off day's high - Tata Motors, Hero Motocorp, Maruti and Bajaj Auto were up 0.5-1.5%.

At 14:10 hours IST: Sensex tanks 200 pts on eurozone woes; ICICI extends losses
The BSE Sensex fell more than 200 points following further decline in European markets while the NSE Nifty tested the 5200 level. France's CAC and Germany's DAX tumbled 1% each while Britain's FTSE was down 0.5%. Even the Dow Jones futures dropped 56 points. The fall was majorly led by banks, capital goods and technology stocks.

The BSE benchmark tanked 254 points to 17,078.35 and the NSE benchmark was down 71.50 points to 5,205.35.

Private sector lenders ICICI Bank, which shot up as much as 2.5%, fell 1.5% and HDFC Bank was down 0.8% while top lender State Bank of India trimmed its gains to 0.5%.

Index heavyweights L&T and ONGC slipped 0.7% each. Even Reliance Industries, India's most valued stock turned flat, which was up more than 2% at one point of time today.

Infosys plunged 10.6% post the company gave much lower than expected guidance for Q1 and FY13 whlie rivals TCS and Wipro dropped 5.5% and 4.5%, respectively.
Declining shares outnumbered advancing by 756 to 639 on the National Stock Exchange.

At 13:54 hours IST: Sensex falls; Infosys dives over 10%, ICICI Bank turns red
The BSE Sensex turned negative amid volatility in the afternoon trade, tracking weak opening of European markets. Private sector lender ICICI Bank shed all gains while technology stocks extended their fall quite sharply.

Infosys, India's No. 2 software services exporter crashed over 10% after giving much weaker than expected guidance for next quarter and financial year. In dollar terms, company sees revenue growth of 0-1% for Q1FY13 and 8-10% for FY13 as against market expectation of 2.5-4% and 12-14%, respectively. Sentiment impact - Tata Consultancy Services plunged 5% and Wipro was down 4%.

The BSE benchmark was down 50.16 points to 17,282.46 and the NSE benchmark fell 12.45 points to 5,264.40.

Even largecaps came off their day's high - ICICI Bank, which rallied more than 2%, slipped 0.2%. Top lender State Bank of India cut its gains from 2.4% to 1.5%.
Tata Motors, country's largest commercial vehicle maker rose 2%, and engineering and construction major Larsen & Toubro moved up 1.35%.

Index heavyweight Reliance Industries climbed 2% and state-owned oil & gas producer ONGC was up 1%.

Shares of Sun Pharma, Coal India and Hero Motocorp topped the buying list, rising nearly 3%.

In the second line shares, BASF surged 14%. Abbott India, Rallis India, Gujarat Gas and Schneider Electric shot up 4-5% while Max India, AstraZeneca, Edelweiss Capital, Apollo Hospital and Polaris Tech slipped 2-5%.

Even the gap between advance and decline trimmed; about 795 shares gained while 588 shares declined.

At 12:42 hours IST: Sensex stays flat; Sun Pharma, Cipla, SpiceJet most active
The BSE Sensex stayed moderately higher due to consistent buying interest in banks, oil & gas, infrastructure and FMCG stocks. However, sharp fall Infosys post weak guidance for Q1 and FY13 has limited the major upside of the market.

The BSE benchmark was up 24.35 points at 17,356.97 and the NSE benchmark rose 14.55 points or 0.3% to 5,291.40. The broader markets continued to outperform benchmarks - the BSE Midcap and Smallcap indices were up 0.9% each.

Drug makers Sun Pharma (gained 2.6%) and Cipla (moved up 0.6%) were the most active shares on the BSE, with 17.3 lakh shares and 20.5 lakh shares, respectively. CNBC-TV18 reported quoting NewsWire18 sources that Sun Pharma may get US okay for diabetes drug Prandin generic. Sources say, the company may launch Prandin generic in US by June.

SpiceJet shot up 14% and it was the most active too with 1.93 lakh shares. Aviation Minister Ajit Singh said group of ministers, in a meeting on February 9, had allowed 49% FDI in aviation. He expects the note on 49% FDI in airlines will go to cabinet very soon.
 
Yesterday in an interview with CNBC-TV18, Vikram Suryavanshi of Antique Stock Broking said SpiceJet would gain the most if direct FDI in aviation is permitted. SpiceJet is his preferred pick because of the company's clean balance sheet.

Shares of Reliance Industries, Tata Motors, ICICI Bank, State Bank of India and L&T shot up 1.5-3%. ITC, HDFC Bank, HDFC, Bharti Airtel and HUL jumped 0.7-1.4%.

However, shares of Infosys, country's second largest IT services exporter tumbled over 9% as the company expects revenue growth (in terms of dollar) of 0-1% for Q1FY13 and 8-10% for FY13 as against market expectation of 2.5-4% and 12-14%, respectively. Peers Tata Consultancy Services and Wipro were down 4-4.5%.

The market breadth was positive; about two shares gained for every share rising on the National Stock Exchange.

At 11:46 hours IST: Nifty at 1-week high of 5300; RIL, SBI, L&T, ICICI lead
The BSE Sensex extended gains led by further upside in Reliance Industries and ICICI Bank. State Bank of India and Larsen & Toubro too advanced further. Even the NSE Nifty touched the one week high, hitting the 5300 level. However, technology stocks retained their top position in the selling list, with the IT Index falling over 6%.

Infosys crashed 9% post the company declared lower than expected guidance for the first quarter and financial year 2012-13 while it managed to meet expectations for Q4 results. Software services exporter sees revenue growth (in terms of dollar) of 0-1% for Q1FY13 and 8-10% for FY13 as against market expectation of 2.5-4% and 12-14%, respectively. Othe two IT majors Tata Consultancy Services and Wipro were down 3-4%.

The BSE benchmark gained 54.5 points at 17,387.10 and the NSE benchmark rose 25 points to 5,301.85.

Oil & gas producer Reliance Industries and engineering and construction company Larsen & Toubro jumped 1.8% each.

Banks continued their gains for second consecutive session today, with the BSE Bankex rising 1.8% ahead of RBI monetary policy on April 17. Top lenders State Bank of India and ICICI Bank shot up over 2% while rival HDFC Bank moved up 1%. Housing Finance company HDFC went up 0.85%.

Auto stocks too extended gains - Tata Motors, Hero Motocorp, Bajaj Auto and Maruti Suzuki surged 2.4-2.7% while M&M rose 1.4%.

Cigarette major ITC was up 1.5% and top FMCG company HUL moved up 1.2%.

The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices rising around 1%. About two shares advanced for every share declining on the BSE.

SpiceJet was the most active with volume of 1.73 crore shares, which shot up 13% as Aviation Minister Ajit Singh said group of ministers, in a meeting on February 9, allowed 49% FDI in aviation and note on 49% FDI in airlines will go to cabinet very soon.

At 10:40 hours IST: Sensex flat; banks up, IT Index tanks 6% post Infy results
The BSE Sensex was completely lacklustre on Friday, even after strong global cues. Disappointing guidance by Infosys for FY13 dampened the sentiment of the market as well as technology sector, but the upside in banks, oil & gas, infrastructure and auto stocks was supporting the market trade moderately higher.

The BSE benchmark climbed just 32 points to 17,364.24 led by 27 components. Meanwhile, the NSE benchmark was up 16 points at 5,292.90.

Asian markets like Hang Seng, Nikkei and Taiwan Weighted moved up 1.2-1.6%, tracking rally in US and European markets yesterday. Straits Times and Kospi gained 0.6-0.9% while Shanghai rose just 0.2%. The US equity markets rose 1.4% yesterday on the back of better than expected Italy auctions and strong expectations of China's Q1 GDP, which came in at 8.1% versus estimate of 8.3%.

Back home, earnings season kicked off with Infosys numbers for the fourth quarter of FY12. Company met expectations for Q4, but it made investors nervous with its guidance for financial year 2012-13. Second largest software services provider is expecting revenue growth of 8-10% in FY13 while street had expected at 12-14%.

The stock plunged nearly 9% to Rs 2,506.75 a share while its rivals TCS and Wipro were down 3-4%. The BSE IT Index tanked 6%.

However, the BSE Auto, Power, FMCG, Capital Goods, Realty, Bank, Healthcare, Oil & Gas and Metal indices were up 1-1.75%.

Country's largest lenders State Bank of India and ICICI Bank rose nearly 2% ahead of RBI policy, which scheduled to be announced on April 17. Experts feel the RBI may consider rate cut of 25 basis points.

At 9:19 hours IST: Sensex up 37 pts; Infy falls 9% on weak FY13 guidance
The BSE Sensex started off trade with more than 50 points gap down due to Infosys' disappointing FY13 guidance, but strong global cues helped the market turned positive immediately.

Infosys, software services provider met expectations for fourth quarter of FY12, but it has disappointed the street by its guidance for financial year 2012-13. The company posted net profit of Rs 2,316 crore, a fall of 2.4% QoQ while the revenue growth for FY13 expected to be 8.10% versus expectations of 12-14%. The stock opened with a fall of 11% or Rs 300 while rival TCS dropped 5%. Wipro and HCL Tech fell 2.5%. Tech Mahindra was down 1.5%.

The BSE benchmark was up 37.34 points at 17,369.96 and the NSE benchmark rose 15.4 points to 5,292.25.

However, ITC, Tata Steel, NTPC, IDFC, Coal India, SBI, HDFC Bank, ICICI Bank and Reliance Industries gained.

About two shares advanced for every share falling on the National Stock Exchange.

In the second line shares, MT Educare (listed yesterday) shot up 5%, which had rallied 13% yesterday.

Nagarjuna Oil Refinery surged 5%. Kingfisher and 3i Infotech were up 1.5%. Unitech rose 2%.

DCB gained nearly 2% ahead of Q4 numbers today.