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Sensex, Nifty breaks three-session winning spree, TCS loses on Chandrasekaran's exit

In a highly volatile session, Sensex ended marginally lower at 27,238 and Nifty at 8,400 on Friday, breaking their three-session winning spree, after a plunge in market heavyweights TCS and Infosys, but positive macroeconomic data restricted the overall fall to some extent. On a weekly basis, both key indices Sensex and Nifty recorded a rise of 478.83 points, or 1.78%, and 156.55 points, or 1.89%, respectively.

Shares of Tata Consultancy Services, considered to be the crown jewel of Tata Group, fell 3.90% to Rs 2,252 apiece on BSE on concerns about its future after its chief N Chandrasekaran was elevated as chairman of Tata Sons. The country’s second largest IT firm, Infosys, also plunged by 2.49% to Rs 975.15 apiece after the company yet again revised its annual revenue guidance at 8.4-8.8% from the earlier 8-9%. However, the Bengaluru-based company has reported a 7% growth in its consolidated net profit at Rs 3,708 crore for the October-December quarter.

Earlier, buying activity got a boost from positive economic data as industrial production in November grew 5.7% against a contraction of 3.4% in the same month a year ago and December retail inflation fell further to a multi-year low of 3.41%. Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Ltd, said, “Earnings season got rolling with three index stocks having announced results, and general sentiments showed an inclination towards holding on to recent gains, especially with IIP and CPI figures lending support. However TCS and Infy’s volatility following their Q3 releases kept a check on gains though, global cues were subdued with US markets showing signs that Trump trades are wearing off.”

The benchmark BSE index had opened higher 27,378.01 and advanced to to hit a higher of 27,459.75 largely in tandem with a firm trend at other Asian bourses. Later, it slipped into the negative zone to touch a low of 27,143.07, but finally ended 9.10 points, or 0.03%, down at 27,238.06. The gauge had rallied 520.57 points in the past three days.

The NSE Nifty settled the day 6.85 points, or 0.08% lower, at 8,400.35 after shuttling between 8,461.05 and 8,373.15 in intra-day trade. Asian stocks ended mixed with key indices like Hong Kong’s Hang Seng rising 0.45% and Japan’s Nikkei 0.80%. While Shanghai Composite index ended 0.21% lower. Key European indices like France, Germany and the UK rose between 0.35 and 0.57%.

On the domestic bourses, out of the 30-share Sensex pack, 17 scrips ended lower. Major losers were TCS (3.90%), NTPC (1.55%), Maruti Suzuki (1.46%), Heromotocorp (1.14%), Dr Reddy (0.93%) Bajaj Auto (0.86%), L&T (0.74%), Tata Motors (0.71%) and Bharti Airtel (0.50%).

Bucking the trend, Axis Bank, ITC, GAIL, HDFC, Sun Pharma and ONGC ended higher. In broader markets, the BSE mid-cap index edged lower by 0.03% while small-cap ended higher by 0.03%. Among BSE sectoral and industry indices, IT fell the most by 1.89%, followed by teck 1.72%, auto (0.77%), power (0.52%), consumer durables (0.51%), realty (0.49%) and capital goods (0.38%). However, FMCG rose by 1.21% followed by banking 0.32%, healthcare 0.16% and oil&gas 0.15%. Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 12.77 crore, while domestic institutional investors (DIIs) sold shares worth a net Rs 110.08 crore on Thursday, as per provisional data released by the stock exchanges.