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The benchmark BSE Sensex ended the session down by over 180 points and the NSE index Nifty closed below the 9,200-mark as Infosys gave lower-than-expected annual revenue guidance and disappointed with the size of its planned share buyback.
The benchmark BSE index closed down by 182.03 points or 0.61 per cent at 29,461.45. The index fell 0.82 percent for the week, its biggest weekly percentage loss since the week ended December 23 and its first weekly loss in three.
The broader NSE index ended 52.65 points or 0.57 per cent lower at 9,150.80, posting a 0.52 percent fall for the week. Infosys shares lost 3.87 per cent to Rs 931.40.
Among BSE sectoral indices, metal index fell the most by 2.84 per cent, followed by IT 2.73 per cent, TECk 2.62 per cent and capital goods 0.97 per cent. On the other hand, oil & gas index was up 1.04 per cent, followed by realty 0.92 per cent, healthcare 0.64 per cent and PSU 0.49 per cent.
Top five Sensex losers were Infosys (-3.86%), Bharti Airtel (-3.03%), Tata Steel (-2.92%), TCS (-2.77%), and Tata Motors (-2.63%), while the major gainers were Sun Pharma (+1.39%), Power Grid (+0.94%), Reliance (+0.75%), ICICI Bank (+0.39%) and HUL (+0.38%).
Infosys, the country's second-biggest software services exporter, said it expected revenue for the year 2017-18 to grow 6.5 percent to 8.5 percent in constant currency terms, below market expectations, while saying it would return up to $2 billion to shareholders.
Also, disappointing macroeconomic data and a weak trend in Asian markets hit the domestic sentiment.
Geopolitical concerns
The broader NSE index hit a record high last week and is up about 12 per cent this year, with a lot of those gains reflecting bets that corporate earnings would recover this year. However, concerns persist as geopolitical worries have grown after the United States launched cruise missiles against an air base in Syria last week and on fears of a new weapons test by North Korea.
“There is wariness about earnings because valuations are so stretched,” said Sunil Sharma, chief investment officer, Sanctum Wealth Management. “Markets have run up and people are looking at booking profits.”
Industrial production fell to a four-month low in February as manufacturing sector lagged behind, while retail inflation hit a five-month high in March though food prices cooled down.
Data released on Wednesday revealed that the Index of Industrial Production (IIP) declined by 1.2 per cent in February. It had risen by 1.9 per cent in February last year.
Retail inflation rose marginally to 3.81 per cent in March from 3.55 per cent in February 2017. It was 4.83 per cent in March last year.
A weak trend in other Asian markets in line with sell-off in the US on continued geopolitical tensions and comments by President Donald Trump expressing concern about a strong greenback also dented the sentiment here, brokers said.
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