Sensex Ends Day 250 Points Lower

After opening on a flat, negative note, the Indian markets extended its losses today following the Jun 2012 quarter results announcement by Infosys, which dampened the investors' mood. The company not only reported a decline in the net sequentially, but also reduced its dollar revenue guidance from around 8%-10 % to 5% for FY13. The mood was so negative that investors disregarded the positive IIP numbers for May 2012, which came in better than market's expectations, growing 2.4% on a YoY basis. There was no respite from the overseas market as well, as they were trading in the red over weak corporate earnings and the slowdown in the economies.

The Asian markets closed in the deep red for the sixth consecutive day today. This is mainly on the back of disappointing result from Japan's policy meet and no stimulus measures to boost the US economy. Investors are majorly concerned with the slowing down of growth across the major economies.

The European markets continue to remain negative on the back of weak global sentiments. Investors were disappointed as the Fed dashed hopes of fresh risk-asset-boosting stimulus in the near term. The corporate earning numbers have also remained muted so far, which is adding to the investors' woes. The muted results highlighted the growing impact of Europe's sovereign debt crisis on companies, as well as that of the slowdown in China.

Dow Jones Futures is currently trading 77 points or 0.62% down at 12459, indicating a negative sentiment in the US markets.

Among the BSE sectoral indices, barring Realty, Capital Goods and Oil & Gas, all the others closed negative in the range of 0.08%-5.11%. Of the major losers, IT and Teck were significantly down by 5.11% and 4.43% respectively.

Following the results announcement by Infosys, all the IT stocks were seen under pressure. Infosys, TCS and Wipro closed with losses of 8.15%, 1.80% and 3.98% respectively. Other stocks like Bharti Airtel, HDFC Bank, Bajaj Auto and Jindal Steel were down in the range of 1%-3.04%.

Among individual stocks, CMC Ltd. has risen by 11.33% to Rs 961.75 post the results announcement. Finolex, MRPL and M&M slipped after the scrips turned ex-dividend. 

The market breadth, which indicates the overall health of the market, was negative for today. Out of the 3247 stocks traded on the BSE, 1873 declined, 1262 advanced and 112 remained unchanged.

We expect the markets to remain negative for tomorrow too.