The BSE Sensex and NSE Nifty closed in red on Monday after software stocks declined, led by Infosys as it reduced its full-year US dollar revenue growth guidance, while worries over September retail inflation which could edge higher also weighed on the market. Sensex closed 175.40 points down at 26,904. Nifty closed 46.10 points down at 8,143.60.

In the 50-share index, Vedanta, Hindalco, GAIL, Tata Motors and BHEL gained between 1.75 per cent and 6.40 per cent. On the other hand, Infosys, Bank of Baroda, Cipla, Lupin and Sun Pharma fell between 1.65 per cent and 3.85 per cent.

Result of Infosys came as a mood dampener for the Indian markets, though, the company reported 87.40% rise in its net profit at Rs 6,306 crore for the quarter ended September 30, 2015, it announced the downward revision of its full-year revenue. The company said that for the fiscal year ending March 31, 2016, revenues are likely to rise by 6.4 per cent – 8.4 per cent, down from a previous estimate of 7.2 per cent – 9.2 per cent in dollar terms. The forecasts were seen being generalised with India Inc. likely to report another tepid quarter.

Traders also remained cautious ahead of the CPI inflation and IIP data announcement scheduled later in the day. CPI had came at 3.66 per cent in August compared to 3.78 per cent in July, while India’s industrial production grew by 4.2 per cent in July 2015. IIP for the month of August is seen rising to 5 per cent, while the September CPI too is likely to increase to 4.5 per cent.

“There has been Infosys-led falls but Infosys earnings cannot be extrapolated to the entire earnings season,” said Aneesh Srivastava, ‎chief investment officer at IDBI Federal Life Insurance Co.

Information Technology sector led the declines. Infosys fell 3.93 per cent while Tata Consultancy Services lost 1.17 per cent.

Among gainers, metal stocks soared for the second day after commodities group Glencore said it would cut its zinc output by a third, sparking a short-covering rally across the board. Share price of Vedanta surged 6.66 per cent while Hindalco Industries rose 5.98 per cent.

The market breadth indicating the overall health of the market remained negative. On BSE, 1,306 shares advanced and 1,444 shares declined. A total of 119 shares stood unchanged.

The BSE Midcap and BSE Smallcap indices outpaced benchmark indices and closed 0.15 per cent and 0.01 per cent up at 10,954.70 and 11,349.57, respectively

The Asian equity markets ended in green on Monday, with the Indonesian index extending gains for a sixth-day due to optimism about economic stimulus. Japan stock exchange was closed on account of ‘Health-Sports Day’ holiday. Indonesia President Joko Widodo has last week announced the third installment of his ambitious economic stimulus package, cutting energy prices and offering concessions to business in an attempt to kick-start growth in Southeast Asia’s largest economy.

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Markets through the day

3.30 pm: Sensex closed 175.40 points down at 26,904 while Nifty dipped 46.10 points at 8,143.60.

3.09 pm: Share price of Simbhaoli Sugars was up 15.57 per cent at Rs 14.40. The company on Monday announced that the Board of Directors of the Company at its meeting held on October 10, has considered and approved the appointment of Dayal Chand Popli as Chief Financial Officer of the Company.

Simbhaoli Sugars also informed BSE on October 10 that The Hon’ble High Court of Judicature at Allahabad (the Court) has sanctioned the Scheme of Amalgamation of Simbhaoli Sugars Limited with Simbhaoli Spirits Limited (the Scheme) on September 09, 2015. The order sanctioning the Scheme was uploaded at the Court’s website on Oct 1, 2015.

2.29 pm: Share price of Bharat Heavy Electricals (BHEL) jumped over 3 per cent intraday after the company informed BSE that it has once again demonstrated its project execution prowess with the commissioning of 2,730 MW of utility power projects in the first half of the current financial year (2015-16). This is the highest achievement in the corresponding period in last 4 years. Nifty was down 41 points at 8.148.75. Sensex was down 169 points at 26,909.80.

2.17 pm: The market breadth indicating the overall health of the market was negative. On BSE, 1,270 shares gained and 1,339 shares fell. A total of 120 shares were unchanged. Sensex was down 144 points at 26,935.

2:10 pm: Sensex dropped down 147.91 points at 26,931.60. Nifty slipped 40.55 points at 8,149.15

1.49 pm: The BSE Midcap index and BSE Smallcap index were up 0.25 per cent and 0.30 per cent, respectively. Sensex was up down 30 points at 27,048.

1.13 pm: Sensex was down 11 points at 27,068. Shares of Bank of Baroda fell sharply by nearly 8 per cent on Monday after the CBI carried out searches at three locations in New Delhi in connection with alleged Rs 6,000 crore remittances sent from BoB to Hong Kong camouflaged as payments for non-existent imports.

12.26 pm: Eros International Media informed BSE on Friday (post market hours) that it has acquired the worldwide rights of Punjabi heartthrob Diljit Dosanjh’s upcoming film Mukhtiar Chadha. The company will release the film on November 27, 2015. Shares of Eros International were trading 0.08 per cent up at Rs 480 apiece. Sensex was up 2 points at 27,082.

12.24 pm: Infosys shares were down 2.58 per cent at Rs 1,137.70 on BSE. Nithin Kamath, founder and chief executive officer, Zerodha said, “Infosys Q2 results are quite impressive, slashing the full year dollar revenue guidance is reflection of management’s realistic market expectation. The current dip in the stock price is perhaps an over reaction to the cut in revenue guidance and profit booking to a certain extent.”

12.18 pm: Coal India shares were down 0.30 per cent at Rs 334.65. Foreign institutional investors (FIIs) have trimmed their stake in Coal India by 12 basis points to 9.04 percent at the end of September 2015 quarter from 9.16 percent as on June 30, 2015. Moreover, domestic institutional investors (DIIs) have decreased their holding in the company by 15 basis points to 8.45 percent at the end of September 2015 quarter from 8.6 percent as on June 30, 2015. Sensex was down 12 points at 27,067.

11.51 am: Massive selling in IT and tech sectors, down 1.42 per cent and 1.18 per cent, respectively, after Infosys posted result for July-September quarter pulled down Sensex from day’s high. Sensex was down 45 points at 27,033.

11.31 am: Jindal Poly Films shares gained as much as 2.23 per cent in the morning trade on Monday after the company announced that it has completed refinancing of the acquisition loans availed for acquiring the BOPP films business of Exxon Mobil. The loans of $160 million were availed in September 2013, and were backed by Corporate Guarantee of Jindal Poly Films (JPFL). After a series of early repayments the current outstanding as on September 30, 2015 was $91.84 million. Sensex was down 47 points at 27,032. 

11.04 am: Sensex was up 11.29 points at 27,090. Shares of YES Bank were trading higher on receiving an approval from the Reserve Bank of India (RBI) to sponsor a Mutual Fund and to setup an Asset Management Company (AMC) and a Trustee Company. The AMC and the Trust companies shall be set up as wholly owned subsidiaries of the bank. The bank will now apply to SEBI to seek necessary approvals. YES Bank was up 0.85 per cent at Rs 731.40

10.57 am: Fall in the Infosys shares dragged the IT sectoral index. The BSE IT index was down 1.65 per cent in the morning trade. Shares of Wipro were down by 1.13 per cent while TCS shares were down 0.68 per cent. Numerous brokerages have suggested that Q2FY15 will be a strong quarter for IT companies due to seasonal strength and favourable moves in the key currencies including USD.
“We expect a healthy quarter for top IT companies as they are expected to post a constant currency growth of 2.4 per cent-4.6 per cent quarter on quarter,” said Kawaljeet Saluja, head of research at Kotak Institutional Equities in a note to investors.

10:45 am: Sensex was up 21.60 points at 27,101.11. Nifty was trading 4.80 points up at 8,194.50.

10:39 am: Gain in stock market helped rupee strengthen against the dollar.  Indian rupee edged higher by five paise to 64.69 against the US dollar at the Interbank Foreign Exchange in early trade.

9.50 am: Infosys opened at Rs 1,202 on BSE, and had touched a high and low of Rs 1,219 and Rs 1,108.90, in trade so far. The BSE IT index was down 1.18 per cent at 11,384.22.

9.44 am: Infosys has informed that the Board of Directors of the Company at its meeting held on Monday has declared an Interim Dividend of Rs 10 per equity share. Sensex was up 42 points at 27,121. Nifty was up 5 points at 8,195.

9.40 am: Sensex was down 17 points at 27,062. Infosys was trading 3 per cent down at Rs 1,127 on BSE.

9.31 am: Nifty was down 5 points at 8,184. Infosys Executive Vice President and CFO Rajiv Bansal resigned and to be replaced by M D Ranganath. Infosys lowered FY16 revenue guidance from 7.2-9.2 per cent to 6.4-8.4 per cent in dollar terms. The share price of the company was down 2.83 per cent at Rs 1.134.80.

The BSE Sensex and NSE Nifty opened in green on Monday tracking positive global cues. Sensex opened 163.08 points up  27242.60.

Infosys announced its Q2 result in the early trade on Monday. Net Profit: Infosys posted standalone net profit of Rs 6,306 crore for the quarter ended September 2015 against Rs 3,365 crore in the corresponding quarter a year ago. Infosys registered consolidated net profit of Rs 3,398 crore for the quarter ended September 30, 2015 against Rs 3,096 crore in the same quarter a year ago.

(With inputs from agencies)