Indian bourses snap six-day rally, led by RIL, Infy

The 30-share BSE Sensex plunged 887.64 points or 1.31% to end at 66,684.26, while the broader Nifty 50 tumbled 234.15 points or 1.17% to settle at 19,745.
Benchmark indices – BSE Sensex and NSE Nifty – tumbled over 1% on Friday after IT behemoth Infosys slashed its FY24 growth outlook to 1-3.5%, citing delayed decision-making by clients amid global macro uncertainties.
“Index heavyweights like RIL and Infy dragged the index lower on account of anticipated and reported results, respectively,” said Nirav Karkera, who heads research at financial services provider Fisdom.
Weak earnings show, ahead of US Fed and European Central Bank policy meets, dampened investor sentiments globally, which have clearly percolated to domestic markets as well, he added.
The 30-share BSE Sensex plunged 887.64 points or 1.31% to end at 66,684.26, while the broader Nifty 50 tumbled 234.15 points or 1.17% to settle at 19,745.
Shares of Infosys tanked 8.18% to settle at Rs 1,330.40 apiece on BSE after the second-largest IT services provider in the country posted a lower-than-expected 11% rise in net profit for the quarter ended June 2023 at Rs 5,945 crore.
Shares of other IT heavyweights — TCS, HCL Tech, Wipro and Tech Mahindra — also ended in red, dragging the broader market down and snapping a six-day winning streak.
“The fall in IT stocks echoed the overnight tumble experienced by the tech-heavy Nasdaq,” explained Acme Investment Advisors Executive Director and Chief Strategist Sugandha Sachdeva, adding that the correction is a healthy sign of a bullish market, …
Among the sectoral indices, BSE IT was hit hardest with a 4.40% fall, followed by consumer durables which dropped 1.09%.
Moving forward, “With the earnings season kicking-off, one can expect elevated bouts of volatility and stock-driven swings over the next couple of weeks,” noted Karkera.
“All eyes will be on the US Fed and ECB policy meeting next week. Investors would also take cues from various macro data that would be released,” added Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Limited.
The outlook going forward remains fairly bullish, with key support pegged at 19,650 levels for the benchmark Nifty 50 index, said Sachdeva.