Sensex closes lower as TCS, Infosys shares fall

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Mumbai: In a highly volatile session, Sensex on Friday ended marginally lower at 27,238 and Nifty at 8,400, breaking their three-session winning spree, after a plunge in market heavyweights TCS and Infosys, but positive macroeconomic data restricted the fall to some extent.

On a weekly basis, both key indices Sensex and Nifty recorded a rise of 478.83 points, or 1.78%, and 156.55 points, or 1.89%, respectively.

Shares of Tata Consultancy Services, considered to be the crown jewel of Tata Group, fell 3.90% to Rs2,252 apiece on BSE on concerns about its future after its chief N Chandrasekaran was elevated as chairman of Tata Sons.

The country’s second largest IT firm, Infosys, also plunged by 2.49% to Rs975.15 apiece after the company yet again revised its annual revenue guidance at 8.4 to 8.8% from the earlier 8-9%.

However, the Bengaluru-based company has reported a 7% growth in its consolidated net profit at Rs3,708 crore for the October-December quarter. “Market was overheated ahead of Tata Consultancy Services and Infosys Ltd reporting their results,” said R.K. Gupta, managing director, Taurus Asset Management Company. “We can also see a bit of profit-booking as well as caution ahead of Donald Trump taking over the US presidency.”

Earlier, buying activity got a boost from positive economic data as industrial production in November grew 5.7% against a contraction of 3.4% in the same month a year ago and December retail inflation fell further to a multi-year low of 3.41%.

Anand James, chief market strategist, Geojit BNP Paribas Financial Services Ltd, said, “Earnings season got rolling with three index stocks having announced results, and general sentiments showed an inclination towards holding on to recent gains, especially with IIP and CPI figures lending support. However TCS and Infy’s volatility following their Q3 releases kept a check on gains though, global cues were subdued with US markets showing signs that Trump trades are wearing off.”

The benchmark BSE index had opened higher 27,378.01 and advanced to hit a higher of 27,459.75 largely in tandem with a firm trend at other Asian bourses. Later, it slipped into the negative zone to touch a low of 27,143.07, but finally ended 9.10 points, or 0.03%, down at 27,238.06. The gauge had rallied 520.57 points in the past three days.

The NSE Nifty settled the day 6.85 points, or 0.08% lower, at 8,400.35 after shuttling between 8,461.05 and 8,373.15 in intra-day trade.