Mumbai (Maharashtra): The Indian equities markets’ key indices slumped by around one per cent on Tuesday dragged by heavy selling pressure in IT, infra and banking stocks amid weakness in the global markets.
The 30 stock S&P BSE Sensex slumped 508.62 points or 0.94 per cent to 53,886.61 points against its previous day’s close at 54,395.23 points. Earlier, the Sensex started the day in the red at 54,219.78 points and slumped to a low of 53,824.97 points in the intra-day.
This is the second consecutive day of drop in the benchmark Sensex. The index had lost 86.61 points or 0.16 per cent on Monday.
The broader Nifty 50 of the National Stock Exchange tumbled 157.70 points or 0.97 per cent to 16,058.30 points against its previous day’s close at 16,216.00 points.
Earlier, the Nifty started the day in the red at 16,126.20 points and slumped to a low of 16,031.15 points in the intra-day. The Nifty had lost 4.60 points or 0.03 per cent on Monday.
The markets witnessed heavy selling pressure in the last hour of the trade tracking nervousness in the global markets.
There was heavy selling pressure in auto, FMCG, IT, metal, banking and financial stocks.
Nifty IT slumped 1.16 per cent to 27,063.75 points. IT stocks have been under selling pressure after disappointing first quarter results of Tata Consultancy Services.
The country’s largest software exporter Tata Consultancy Services (TCS) tumbled for the second day. TCS slumped 0.92 per cent to Rs 3084.65. The scrip had lost 4.64 per cent on Monday.
On Friday, TCS reported a net profit of Rs 9,478 crore for the first quarter of the current financial year as compared to Rs 9,008 crore reported in the corresponding period of the last year, posting year-on-year growth of 5.21 per cent. The company’s profit is sharply lower than the market’s expectations. The company’s revenue rose 16.2 per cent year-on-year to Rs 52,758 crore for the quarter ended June 30.
TCS is the first major company to announce financial results. Financial results of the country’s largest software firm set the tone for the earnings season.
Infosys was the biggest Sensex loser in percentage terms. Infosys tumbled 2.33 per cent to Rs 1438.50. HCL Technologies fell 1.63 per cent to Rs 928.05. Tech Mahindra slipped 0.97 per cent to Rs 997.70.
Nestle India, Power Grid Corporation, Hindustan Unilever, Mahindra & Mahindra, Kotak Bank, Asian Paints and IndusInd Bank were among the major Sensex losers.
Selling pressure was across the board. Only three of the 30 scrips that are part of the benchmark Sensex closed in the positive.
NTPC jumped 1.87 per cent to Rs 147.05. Bharti Airtel rose 0.33 per cent to Rs 662.45. Bajaj Finance closed 0.21 per cent higher at Rs 5873.45.