Sensex Falls Over 350 Points As IT Stocks Tumble Led By Infosys
Stock Market Updates: Losses in IT and pharmaceutical stocks dragged the markets lower
Here are 10 things to know about the markets today:
At 12:30 pm, the Sensex traded 276.24 points - or 0.68 per cent - lower at 40,518.50, while the Nifty was down 74.00 points - or 0.62 per cent - at 11,897.05. (Track Sensex, Nifty Here)
Tech Mahindra, HCL Tech, TCS, Bharti Airtel and Bajaj Finance, trading between 2.17 per cent and 3.93 per cent lower, were the worst hit among 26 laggards in the 50-scrip index. On the other hand, Asian Paints, Tata Steel, Hero MotoCorp and Axis Bank, up 1.85-2.00 per cent each, were the top Nifty gainers.
Reliance Industries, Infosys and TCS were the biggest drags on Sensex, together accounting for a loss of more than 200 points in the index.
Infosys shares fell as much as 3.15 per cent to Rs 1,100.35 apiece on the BSE, having earlier hit a record high of Rs 1,185 a day after the IT major raised its annual revenue growth forecast. Growth in demand for Infosys's digital services during the pandemic boosted its profitability.
"The ongoing volatility is characteristic to bull markets. The psychological mark of 12,000 has obviously attracted some realignment and we have seen the defensive sectors like IT and pharma in the red today," Anand James, chief market strategist at Kochi-based Geojit Financial Services, told.
The NSE's India VIX index - which gauges the expectation of volatility in the near term - rose as much as 1.66 per cent in the first half of the session. "China's fresh rhetoric on war may have prompted traders to take their eyes off the rally, but with Diwali around the corner, markets look to be betting on earnings surprises to help with the next leg of upsides," Mr James said.
Banking and financial services shares recovered early losses, providing some support to the markets. The Nifty Bank index - comprising stocks of 12 major lenders in the country - climbed up as much as 0.89 per cent, led by gains in private sector lenders Axis Bank and Kotak Mahindra Bank.
On Wednesday, the Supreme Court said any delay in implementing a waiver on "interest on interest" on loans up to Rs 2 crore is not in the interest of the common man. "Common man's Diwali is now in the government's hands," the bench said, , expressing hope that orders will be out before the next hearing, listed for November 2.
The top court was hearing a batch of petitions on whether banks should levy compound interest on borrowers choosing to defer their loan repayments during the coronavirus pandemic.
Equity markets elsewhere in Asia fell on Thursday after downbeat comments from US Treasury Secretary Steven Mnuchin that a stimulus deal was unlikely be made before the November 3 vote, and a record number of new coronavirus infections in parts of Europe.