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Stocks lose tech momentum

Mumbai, April 15: The better-than-expected numbers of Infosys led to a spurt in share prices on the bourses. However, the upbeat mood was temporary as higher inflation and the contraction in February output, announced on Friday, dampened investor sentiments later in the day.

Stocks of TCS and Wipro also gained on expectations of better numbers in the fourth quarter. However, they could not sustain these levels on account of profit booking. Also, despite the good numbers, Infosys came out with a conservative revenue guidance for the current fiscal.

The BSE Sensex initially touched a high of 22737.31, but fell sharply and remained in the negative terrain for most part of the day. It later ended at 22484.93, a fall of 144.03 points, or 0.64 per cent. The 50-issue Nifty also dipped 43.20 points, or 0.64 per cent, to 6733.10.

Investors were disappointed with the wholesale price index-based inflation numbers, which hit a three-month high in March at 5.7 per cent.

Retail inflation, which was announced after market hours, rose to 8.31 per cent.

According to analysts, the rise in inflation will prompt the Reserve Bank of India to hold interest rate cuts in the future. Concerns led to profit-booking in interest rate sensitives such as banking and realty, bringing down the indices.

 
 
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