Sensex dips 87 points on selling in IT counters, weak global equities

Benchmark indices turned highly volatile in the last hour of trade on Monday, with the Sensex falling 86.61 points amid heavy selling in IT counters
Sensex, Nifty open on positive note on firm global trends, foreign funds inflows
Sensex, Nifty open on positive note on firm global trends, foreign funds inflows

Mumbai: Benchmark indices turned highly volatile in the last hour of trade on Monday, with the Sensex falling 86.61 points after three days of gain amid heavy selling in IT counters and weak trends in global markets. The 30-share BSE benchmark declined 86.61 points or 0.16 per cent to settle at 54,395.23. During the day, it fell by 391.31 points or 0.71 per cent to 54,090.53.

The broader NSE Nifty dipped 4.60 points or 0.03 per cent to close at 16,216.

From the Sensex pack, Bharti Airtel, TCS, HCL Technologies, Infosys, Wipro, Tech Mahindra, Larsen & Toubro and Power Grid were the major laggards.

TCS fell 4.64 per cent after its earnings failed to match market expectations.

The country's largest software exporter TCS on Friday reported a 5.2 per cent rise in June quarter net profit to Rs 9,478 crore, restricted by the impact of annual wage hikes and promotions that took operating profit margins to multi-quarter lows.

Brokerage firm Prabhudas Lilladher said the company has missed on both revenue and margins in the June quarter results.

Meanwhile, Tata Steel, M&M, Dr Reddy's Lab, ICICI Bank and Asian Paints were among the gainers.

"As the domestic market turned its focus towards quarterly results, the weak start of IT earnings wounded the sentiments, forcing benchmark indices to open on a weak note. However, with support from banking, metal and energy stocks, the domestic market managed to pare its losses to close flattish," said Vinod Nair, Head of Research at Geojit Financial Services.

In Asia, markets in Shanghai, Hong Kong and Seoul settled lower, while Tokyo ended higher.

Equity markets in Europe were trading lower in mid-session deals. The US markets had ended on a mixed note on Friday.

Meanwhile, international oil benchmark Brent crude declined 1.48 per cent to USD 106.3 per barrel.

Foreign institutional investors remained net sellers on Friday, offloading shares worth Rs 109.31 crore, as per exchange data.

(With PTI inputs)

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

logo
PSU Watch
psuwatch.com