Sensex ends 75 points down after rising to highest intraday level in 2-1/2 months

Our Bureau |Agencies | | Updated on: Dec 06, 2021

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The benchmark BSE Sensex slipped after earlier rising to its highest intraday level in nearly 2-1/2 months as software exporters fell after revenue warnings by rivals and euro zone worries led to concerns about June-quarter results.

The 30-share BSE index ended lower by 75.07 points or 0.27 per cent at 27,945.80 after earlier marking its highest daily level since April 20.

Similarly, the 50-share NSE index Nifty ended down by 8.15 points or 0.1 per cent at 8,444.90.

Among BSE sectoral indices, oil & gas gained the most by 0.81 per cent, followed by auto 0.4 per cent, TECk 0.28 per cent and FMCG 0.19 per cent. On the other hand, metal index was down 0.67 per cent, followed by IT 0.47 per cent, healthcare 0.45 per cent and infrastructure 0.41 per cent.

Oil marketing companies such as Indian Oil Corp rose after crude oil prices slumped in the previous session.

Oil retailers were the top gainers among BSE large-cap stocks. Hindustan Petroleum Corp rose 5.77 per cent, Bharat Petroleum Corp gained 1.4 per cent and Indian Oil Corp surged 5.4 per cent.

Shares of Infosys and other software exporters fell after rivals issued revenue warnings and eurozone worries over Greece's default led to concerns about June-quarter results.

IT shares led the losses with Infosys down 0.96 per cent, Tech Mahindra lower 1.45 per cent and Tata Consultancy Services down 0.42 per cent.

Telecom stocks rose with Bharti Airtel up 2.13 per cent after the company said it had completed the divestment of tower assets in five countries.

Companies, including Tech Mahindra, Persistent Systems and KPIT Technologies, have warned that revenues would be lower than expected in the April-June quarter due to a delay in capex at key clients and cross-currency shifts.

Market research firm Gartner Inc had said on Tuesday that worldwide IT spending would decline 5.5 percent in 2015, which analysts attributed to the rising US dollar.

"IT companies' business model is changing, so slippages in quarterly results would continue for a while," said Deven Choksey, managing director at K R Choksey Securities.

IT companies can be bought but only with a two-year investment horizon, he added.

The dollar was near a three-week high on Thursday and world stock markets had a delicate feel, as the implication of US jobs data later for a possible Fed rate hike added to Europe’s uncertainty over Greece.

On the domestic front, monsoon progress, which has been above expectation, and reforms such as land acquisition bill would be key to the stock market performance, according to traders.

Published on July 02, 2015
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