Stock markets: The equity benchmark indices took a hit in early trade on Friday following a non-stop record-breaking rally, with IT giant Infosys leading the decline after slashing its FY24 growth outlook. Reliance Industries and Tata Consultancy Services also contributed to the bearish trend by experiencing a decline in share prices.
After several days of a record-breaking rally, the 30-share BSE Sensex dropped 749.75 points to 66,822.15 in early trade. The NSE Nifty also fell by 203.15 points to 19,776. Both benchmark indices started the trading session on a weak note.
Among the Sensex pack, Infosys witnessed a nearly 8% decline after the company reported lower-than-expected net profit growth for the June quarter and shocked investors by revising its FY24 growth outlook to 1-3.5% due to delayed decision-making by clients and global macro uncertainties.
Other major laggards included HCL Technologies, Tata Consultancy Services, Wipro, Hindustan Unilever, Reliance Industries, and Tech Mahindra. On the other hand, Larsen & Toubro, State Bank of India, Nestle, Power Grid, and Tata Motors were among the gainers.
Asian and US markets performance:
Tokyo traded lower in Asian markets, while Seoul, Shanghai, and Hong Kong showed positive performance. The US markets mostly ended with losses on Thursday.
Brent crude, the global oil benchmark, climbed by 0.78% to USD 80.26 a barrel. The BSE benchmark had reached its all-time closing high of 67,571.90 on Thursday with a jump of 474.46 points or 0.71%, extending its winning streak to the sixth day. It also hit a new lifetime intra-day peak of 67,619.17 with a rally of 521.73 points or 0.77% during the day.
The Nifty experienced a 0.74% increase of 146 points to reach its record closing high of 19,979.15. It also soared to a fresh record high of 19,991.85 with a 0.80% surge of 158.7 points during the session. Foreign Institutional Investors (FIIs) were buyers on Thursday, purchasing equities worth Rs 3,370.90 crore as per exchange data.
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Rupee depreciates against the dollar
In early trade on Friday, the rupee fell by 12 paise to 82.05 against the US dollar, influenced by a negative trend in domestic equities and firm crude oil prices. The domestic unit opened at 82.03, reaching a low of 82.05 compared to its last close of 81.93 on Thursday. Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, stated that the rupee is likely to remain range-bound as inflows dominate and the Reserve Bank of India (RBI) maintains the US dollar near 81.90.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
