Mumbai: Indian equity indices continued their southbound journey, falling the most in the three months, after witnessing volatility throughout the trading session. Even the strong industrial production numbers that was released on Monday and the surprisingly positive result of IT major Infosys could not cheer the market. Weak cues from the European and Asian markets coupled with selling in the realty and metal stocks led the markets to end the day on negative terrain.
There were concerns that Indian Industrial Production (IIP) which rose to 11.7% for November also indicated that central bank will tighten monetary policy in its review on January 29. Vaibhav Sanghavi, a director at Ambit Capital reckons, "It raises concern that the Reserve Bank of India may start phasing out the stimulus package. We may see some tightening of rates soon."
The Sensex of the Bombay Stock Exchange (BSE) lost 104.20 points, or 0.59%, to end the day at 17,422.51 points. The broader S&P CNX Nifty of the National Stock Exchange (NSE) was down by 39 points, or 0.74%, to close the day at 5,210.40 points. The BSE IT index showed a positive close of 3.91% as the results of Infosys Technologies surprised analysts with a 2.7% jump in net earnings. "It feels like 2004 all over again as Infosys results point to a major up-cycle in outsourcing, driving earnings upto levels not imagined till recently," said a report generated by CLSA's research team.
source-financialexpress.com
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