Markets halt 9-day rally; Infosys slumps 9%

The 30-share BSE Sensex tanked 520.25 points or 0.86% to settle at 59,910.75 on April 17, 2023. The broader NSE Nifty fell 121.15 points or 0.68% to finish at 17,706.85.

Equity benchmark indices Sensex and Nifty buckled under selling pressure after nine-session rally on Monday, as massive sell-off in IT, tech and telecom counters unnerved investors.

Intense selling in Infosys, which fell over 9% after lower-than-expected revenue guidance for FY24, and HDFC twins also pulled the benchmarks down.

The 30-share BSE Sensex tanked 520.25 points or 0.86% to settle at 59,910.75. During the day, it plunged 988.53 points or 1.63% to 59,442.47.

The broader NSE Nifty fell 121.15 points or 0.68% to finish at 17,706.85.

"The market responded negatively to the weak start of the earnings season by IT bellwether and their cautious outlook. On the global front, the U.S. 10-year bond yield rose as solid US job data raised concerns over further rate hikes by the Fed.

"The earnings reports, primarily from the IT and banking sectors, will influence market trends in the coming days. We expect Nifty50 earnings to grow by 10 per cent in Q4 FY23, driven by banking and finance, auto, telecom, and FMCG," said Vinod Nair, Head of Research at Geojit Financial Services.

Among the Sensex firms, Infosys emerged as the biggest laggard, falling over 9 per cent after the company reported lower-than-expected growth in the fourth quarter net profit and gave a weak 4-7 per cent revenue growth guidance for FY24 amid the tightening of IT budgets by clients following a turmoil in the US banking sector.