Sensex Snaps 4-Day Rally, Ends 106 Points Lower On Selloff In IT Stocks

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Sensex snapped 4-day winning streak on Friday as blue chip Infosys fell as much 9 per cent after the software services exporter posted disappointing results and slashed revenue forecasts.

Bigger rival Tata Consultancy Services also fell, even as it reported a more upbeat quarterly profit than Infosys, as investors were concerned about its outlook, given the potential impact from the British vote to exit the European Union.

“We are expecting a slowdown in IT companies, caused by the impact of Brexit,” said Abhishek Jain, head of research, KR Choksey Securities.

Post-Brexit, IT vendors have been facing issues relating to order pricing, Jain said, adding that the sector would not remain in the “limelight” for another 6-7 months.

The Sensex ended 106 points lower at 27,836 and Nifty closed 24 points lower at 8,541.

Infosys, India’s second largest IT services exporter, closed 8.8 per cent lower after earlier slumping to its lowest in more than six months, dragging the Nifty IT Index down by 4 per cent.

Meanwhile, TCS closed 3 per cent lower.

Meanwhile, investors booked profits on some recent outperformers like State Bank of India and Kotak Mahindra Bank, after a rally early this week.