Sensex, Nifty fall as Infosys outlook disappoints investors.

13-04-2017
HT

Indian shares fell on Thursday, dragged by technology stocks, after Infosys Ltd’s revenue outlook and plan to return cash to shareholders fell short of expectations, raising concerns at the start of the earnings reporting season.

Infosys, the country’s second-biggest software services exporter, said it expected revenue for the year 2017-18 to grow 6.5% to 8.5% in constant currency terms, below market expectations, while saying it would return up to $2 billion to shareholders.

The announcements sent Infosys stock down as much as 2.9% to its lowest since Feb. 9, offsetting early gains on its slightly higher-than-expected consolidated net profit, and cast a shadow over future earnings results.

The broader NSE Nifty hit a record high last week and is up about 12% 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.”

The Nifty was down 0.18% at 9,186.60 as of 0524 GMT, poised for a weekly loss of about 0.14%.

The benchmark BSE Sensex was 0.17% lower at 29,593.28, headed for a 0.4% weekly fall.

Indian shares are headed for a fall this week, reversing gains of about 0.3% made last week.

The Nifty IT index fell as much as 1.75% to its lowest in over two months. The index has fallen about 0.7% this year, up to Wednesday’s close.

However, financial stocks continued to rise with the Nifty PSU Bank index trading 1.1% higher. Up to Wednesday’s close, the index has risen nearly 18.4%.

Write your Comments on this Article

Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Konkanworld.com will not be responsible for any defamatory message posted under this article. Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on Konkanworld.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using Konkanworld.com will be purely at your own risk, and in no way will Konkanworld.com be held responsible. Similarly, Konkanworld.com reserves the right to edit / block / delete the messages without notice any content received from readers.

  • Konkan World
  • Stay Connected
  • Facebook Google+ Twitter YouTube

KONKAN WORLD offers accurate, up-to-date, a large collection of videos from KONKAN WORLD VIDEOS and indulge in fun you will not find else where!.
© Copyright 2014 Konkanworld media Inc