Sensex, Nifty snap record-breaking run on Infosys shocker; tank over 1%

Benchmark stock indices Sensex and Nifty tumbled over 1% due to deep losses in IT behemoth Infosys which slashed its FY24 growth outlook

Benchmark stock indices Sensex and Nifty tumbled over 1% on July 21 due to deep losses in IT behemoth Infosys which slashed its FY24 growth outlook.

Snapping its six-day record-breaking rally, the 30-share BSE Sensex tanked 887.64 points or 1.31% to settle at 66,684.26. During the day, it plummeted 1,038.16 points or 1.53% to 66,533.74. The NSE Nifty fell by 234.15 points or 1.17% to end at 19,745, cutting short its six-day winning run. As many as 36 Nifty shares closed in negative while 14 advanced.

From the Sensex pack, Infosys tanked over 8% after the company reported a lower-than-expected 11% rise in net profit for the June quarter and delivered a shocker as it slashed its FY24 growth outlook to 1-3.5% on delayed decision-making by clients amid global macro uncertainties.

"The weak guidance from Infosys cast a shadow over the outlook of the Indian IT sector, causing a delay in Nifty's pursuit of the 20,000 mark. While the heavyweights surrendered to the bears, the small caps demonstrated resilience," Vinod Nair, Head of Research at Geojit Financial Services said.

Global markets presented a mixed picture, with the U.S. market struggling due to weak earnings, while U.K. retail sales exceeded expectations with a 0.7% MoM growth, he added.

A decline in shares of market bluechip firms Reliance Industries and Tata Consultancy Services also added to the bearish trend in equities. Hindustan Unilever, HCL Technologies, Wipro, and Tech Mahindra were the other major laggards.

On the other hand, Larsen & Toubro rose the most by 3.88% after it bagged an order of worth over ₹7,000 crore from the bullet train project.