Reuters logo
Sensex falls over 1 percent; Infosys plunges
December 8, 2014 / 6:13 AM / 3 years ago

Sensex falls over 1 percent; Infosys plunges

A man looks at a screen across the road displaying the election results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai May 16, 2014. REUTERS/Danish Siddiqui/Files

MUMBAI (Reuters) - The BSE Sensex and Nifty posted their biggest fall in 7-1/2 weeks on Monday, as IT services exporter Infosys Ltd(INFY.NS) slumped after its founders sold the company’s stock, while metals and mining firms tumbled on data showing an unexpected fall China’s imports.

Recent outperformers also took a hit on a slew of worrisome global factors, including stronger-than-expected United States jobs data that raised the prospect of early U.S. rate hikes and a ratings downgrade for Italy.

Adding to the concerns, overseas investors have also started taking profits. Foreign institutional investors sold Indian shares worth 1.09 billion rupees on Friday.

“Today’s fall was basically on tech stocks, especially on Infosys, and investors booked profits in banks. However, nothing fundamentally went wrong. Perhaps fundamentals are far more positive now. We expect more reforms to go through in this (parliament) session,” said Deven Choksey, managing director, KR Choksey Securities.

The benchmark BSE Sensex closed 1.19 percent lower at 28,119.40, while the broader Nifty ended down 1.17 percent at 8,438.25.

Infosys shares led the losses. The stock fell 4.8 percent, its biggest single-day fall since May 29, after some of the company’s founders sold shares worth $1.1 billion.

The founders and their families sold 32.6 million shares in Infosys at a fixed price of 1,988.87 rupees each, a 4 percent discount to Friday’s close.

Metals and mining stocks fell after China’s imports shrank unexpectedly in November while export growth slowed, fuelling concerns the world’s second-largest economy could be facing a sharper slowdown. Tata Steel (TISC.NS) closed down 2 percent, Hindalco Industries (HALC.NS) ended 2.5 percent lower while Sesa Sterlite SESA.NS fell 3.7 percent. Some recent outperformers also closed lower. Mahindra and Mahindra (MAHM.NS), which gained 5.4 percent in the past 10 sessions, closed down 3.5 percent.

Banks also fell on profit-taking. State Bank of India closed down 1.5 percent after gaining 18.9 percent in November. ICICI Bank (ICBK.NS) ended 1.7 percent lower. It was up 7.9 percent in the previous month.

Among the gainers, ITC Ltd (ITC.NS) closed 1.7 percent higher, adding to its 2.1 percent gain in the previous session after reports the government was rethinking a potential ban on the sale of loose cigarettes.

Shares in Dolphin Offshore (DOLP.NS) gained 4.7 percent after its Mexican client extended a contract with the company for three more years.

Reporting by Indulal PM; Editing by Anupama Dwivedi

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below