Sensex ends 351 points lower; Infosys, ICICI down
MUMBAI: Indian markets ended in deep red as concerns of interest rate hike by the Reserve Bank of India and below street expectation quarterly results from Infosys Technologies hurt sentiments. Traders also booked profits after a short-covering rally in previous session.
According to analysts, the market is likely to remain choppy after the recent correction and take cues from quarterly earnings for direction. Street is factoring in a possibility of interest rates from the RBI by month end. The central bank is expected to increase rates by 25-50 basis points.
Indices opened on a lower note after Infosys Technologies reported 14 per cent rise in net profit for quarter ended December, lagging market forecast as a firmer rupee and higher wage costs weighed on rising demand. Infosys reported net profit for the fiscal third-quarter ended December rose to Rs 17.8 billion ($396.4 million) from 15.6 billion a year ago.
3QFY11 results are below estimates. However, we draw comfort from the management commentary on CY11 IT budgets and pricing trend. Company has expressed confidence on maintaining margins. We expect FY12 revenue growth to be better than FY11 and expect consensus upgrades to FY12 EPS as we progress into CY11, said JM Financial report.
The indices fell sharply after the inflation figures were announced. India's food price index rose 16.91 per cent, driven mainly by high vegetable prices, and the fuel price index climbed 11.53 per cent in the year to Jan. 1, government data on Thursday showed.
National Stock Exchanges Nifty ended at 5751.90, down 111.35 points or 1.90 per cent. The broader index touched a high of 5857.75 and low of 5736.70 intraday.
Bombay Stock Exchanges Sensex closed at 19182.82, down 351.28 points or 1! .80 per cent. The 30-share index touched a high of 19522.38 and low of 19136.27 in todays trade.
We dont expect the market to go below strong support of 5700-5750 and have a bullish outlook for next quarter. Sectorally metals, technology and FMCG look bullish. Hindalco, Sterlite, Polaris, HCL Tech, HUL and Britannia can see good upmove. Traders can buy long positions at current levels. On the upside, Nifty has strong support at 6050-6100, if that is surpassed then 6400 is achievable, said Rohit Srivastava, Fund Manager, Protech PMS, Sharekhan.
According to analysts, the market is likely to remain choppy after the recent correction and take cues from quarterly earnings for direction. Street is factoring in a possibility of interest rates from the RBI by month end. The central bank is expected to increase rates by 25-50 basis points.
Indices opened on a lower note after Infosys Technologies reported 14 per cent rise in net profit for quarter ended December, lagging market forecast as a firmer rupee and higher wage costs weighed on rising demand. Infosys reported net profit for the fiscal third-quarter ended December rose to Rs 17.8 billion ($396.4 million) from 15.6 billion a year ago.
3QFY11 results are below estimates. However, we draw comfort from the management commentary on CY11 IT budgets and pricing trend. Company has expressed confidence on maintaining margins. We expect FY12 revenue growth to be better than FY11 and expect consensus upgrades to FY12 EPS as we progress into CY11, said JM Financial report.
The indices fell sharply after the inflation figures were announced. India's food price index rose 16.91 per cent, driven mainly by high vegetable prices, and the fuel price index climbed 11.53 per cent in the year to Jan. 1, government data on Thursday showed.
National Stock Exchanges Nifty ended at 5751.90, down 111.35 points or 1.90 per cent. The broader index touched a high of 5857.75 and low of 5736.70 intraday.
Bombay Stock Exchanges Sensex closed at 19182.82, down 351.28 points or 1! .80 per cent. The 30-share index touched a high of 19522.38 and low of 19136.27 in todays trade.
We dont expect the market to go below strong support of 5700-5750 and have a bullish outlook for next quarter. Sectorally metals, technology and FMCG look bullish. Hindalco, Sterlite, Polaris, HCL Tech, HUL and Britannia can see good upmove. Traders can buy long positions at current levels. On the upside, Nifty has strong support at 6050-6100, if that is surpassed then 6400 is achievable, said Rohit Srivastava, Fund Manager, Protech PMS, Sharekhan.
Comments