WEEKEND MARKET: In a stunning turn of events, the benchmark stock indices Sensex and Nifty experienced a precipitous drop of over 1% on July 21, driven by the severe losses incurred by IT giant Infosys. The company had to reduce its growth outlook for FY24, sending shockwaves throughout the market.
The 30-share BSE Sensex, which had been basking in a six-day record-breaking rally, saw a drastic decline of 887.64 points or 1.31%, finally settling at 66,684.26. At its lowest point during the day, it had plummeted even further, reaching 66,533.74 with a loss of 1,038.16 points or 1.53%. Similarly, the NSE Nifty lost 234.15 points or 1.17%, putting an end to its six-day winning streak. Of the 50 Nifty shares, 36 closed in negative territory while only 14 managed to advance.
The setback was primarily caused by Infosys, as its shares tumbled over 8% following the disappointing 11% increase in net profit for the June quarter. The company's bombshell announcement of slashing its FY24 growth outlook to 1-3.5% further exacerbated the situation. This decision was attributed to delayed decision-making by clients amidst the prevailing global macro uncertainties.
Adding to the bearish trend in equities were the declines in shares of market giants Reliance Industries and Tata Consultancy Services. On the other hand, Larsen & Toubro witnessed a notable rise of 3.88% after securing an order worth over Rs. 7,000 crore from the bullet train project.
Among the gainers were NTPC, State Bank of India, Kotak Mahindra Bank, Tata Motors, ICICI Bank, Sun Pharma, Maruti, and Bharti Airtel.
The BSE Midcap index experienced a slight dip of 0.26% to reach 29,547.28, while the BSE Smallcap index managed a modest 0.13% gain, closing at 34,146.66 points.
Analyzing sectoral indices, it was evident that the BSE IT sector took the hardest hit, plunging by 4.40%, followed by a 1.09% drop in the consumer durables sector.
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