Indian shares fell on Friday, with Infosys dragging benchmark indexes lower following a report its founders were preparing to exit the IT bellwether, while the prospects of a hung parliament in the UK also hurt sentiment.
Indian shares fell on Friday, with Infosys dragging benchmark indexes lower following a report its founders were preparing to exit the IT bellwether, while the prospects of a hung parliament in the UK also hurt sentiment. Infosys was trading 1.62 percent lower, after falling as much as 3.5 percent, despite the company denying a Times of India report that said the company’s promoters were looking to sell their entire stake.
Global market sentiment took a hit after British elections left no single party with a clear claim to power ahead of talks to exit the European Union, sideswipe investors who had already weathered major risk events in the United States and Europe. “The overhang of global cues will definitely be there in markets across the world,” said Devon Chokes, promoter, KKR Chokes Investment Managers.
Both the BSE and NSE indexes were headed for their first weekly fall in five. Analysts have been advising investors to be cautious in the near term after a record-breaking rally in the indexes over the recent past. Both the indexes had hit fresh record highs on Tuesday. “That’s why investors are not pumping in money now at this stage, (but are) sitting on cash,” Chokes added.
India is due to post inflation data on Monday amid rising hopes for a central bank rate cut later this year. The broader NSE index was down 0.16 percent at 9,632.15 as of 0621 GMT, and down 0.29 percent for the week. The benchmark BSE index was 0.14 percent lower at 31,168.54 and down 0.34 for the week.
Infosys pulled down other IT stocks and the Nifty IT index fell as much as 1.68 percent to its lowest since May 18. Infosys lost 2.4 percent while Tech Mahindra Ltd fell 2.6 percent.
Meanwhile, embattled mobile carrier Reliance Communications continued its slide, falling as much as 3.2 percent. The company on Wednesday pushed back against Moody’s and Fitch, disagreeing with the ratings agencies’ downgrade.