Markets not impressed by robust industry numbers, Infosys results (Roundup)

Indian equities markets Tuesday ignored the robust industrial production numbers released by the government as well as an improved revenue guidance from IT bellwether Infosys, with a key index ending 104 points in the red.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened at 17,534.1 points and ended trade at 17,422.51 points, down 104.2 points or 0.59 percent from Monday's close at 17,526.71 points.

Banking majors ICICI and SBI, along with ITC and Tata Steel, were among the major contributors to the slump.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty ended at 5,210.4 points, against the previous close at 5,249.4 points, a loss of 0.74 percent.

Broader market indices also came under selling pressure, with both the BSE midcap and small cap indices ending 1.14 percent lower.

Infosys Technologies, which revised its revenue guidance for 2009-10 upwards to Rs.22,500 crore (Rs.225 billion/$5 billion), a growth of 3.7 percent over the last fiscal, did help improve sentiments but was not able to sustain it.

Improved industrial output numbers too did not matter as selling sentiment gained strength.

As per government figures, industrial production grew at a better-than-expected 11.7 percent in November compared to 2.5 percent in the corresponding month last year.

The market breadth was positive, with as many as 2,179 stocks advancing, compared to 718 on the decline, and 57 remaining unchanged.

Among the top gainers at this time were Wipro, up 4.89 percent at Rs.694.55; TCS, up 4.88 percent at Rs.749.10; Infosys, up 3.97 percent; and Mahindra and Mahindra, up 2.64 percent at Rs.1,189.25.

Top losers included DLF, down 3.86 percent at Rs.383.95; Reliance Communications, down 3.49 percent at Rs.175.60; Tata Steel, down 3.42 percent at Rs.626.85; and Sterlite, down 3.18 percent at Rs.875.65.

Other Asian markets were a mixed bag, with the benchmark Japanese index, the Nikkei, ending 0.75 percent higher at 10,879.14 points, while the Hang Seng of the Hong Kong Stock Exchange closed 0.38 percent lower at 22,326.64 points.

The Chinese Shanghai composite index ended 1.91 percent higher at 3,273.97 points and the Korean Kospi closed at 1,698.64, up 0.27 percent.

European markets were ruling in the red with the FTSE 100 index, the benchmark index of the London Stock Exchange, ruling 1.38 percent down at 5,461.91 points.

The French index, CAC 40, was down 1.04 percent at 4,000.87 points, while its German peer, the DAX, was ruling 1.23 percent lower at 5,996.41 points.

Last updated on Jan 12^th, 2010 at 17:39 pm IST--IANS