Sensex plunges 335 points, Nifty falls below 11,600-mark; Infosys, Tata Motors, Bharti Airtel among top losers

Snapping its six-session rising streak, equity benchmark BSE Sensex plunged 335 points on Tuesday, dragged by a massive plunge in Infosys' shares following a complaint against the company's chief executive

Press Trust of India October 22, 2019 17:26:55 IST
Sensex plunges 335 points, Nifty falls below 11,600-mark; Infosys, Tata Motors, Bharti Airtel among top losers
  • The 30-share BSE Sensex ended 334.54 points, or 0.85 percent, lower at 38,963.84

  • It hit an intra-day low of 38,924.85 and a high of 39,426.47

  • The broader NSE Nifty too tumbled 73.50 points, or 0.63 percent, to settle at 11,588.35

Mumbai: Domestic equities took a pause after a six-session winning run on Tuesday, with IT major Infosys' shares crashing following allegations of "unethical practices" against the company's chief executive.

The BSE gauge Sensex closed 334.54 points, or 0.85 percent, lower at 38,963.84. It hit an intra-day low of 38,924.85 and a high of 39,426.47.

The broader NSE Nifty too tumbled 73.50 points, or 0.63 percent, to settle at 11,588.35. The Indian market opened after an extended weekend.

Infosys shares tanked nearly 17 percent to mark their worst intraday fall in over six years during the day after the IT services giant said it is investigating claims by anonymous whistleblowers accusing CEO Salil Parekh of "unethical practices" to shore up profits through irregular accounting.

The IT services major saw its stock closing 16.21 percent lower at Rs 643.30 apiece on the BSE, wiping out Rs 53,451 crore from the company's market valuation.

Other top losers were Tata Motors, Bharti Airtel, HCL Tech and Bajaj Finance, shedding up to 3.51 percent.

Sensex plunges 335 points Nifty falls below 11600mark Infosys Tata Motors Bharti Airtel among top losers

Representational image. Reuters.

Among the major gainers were ICICI Bank, Sun Pharma, Bajaj Auto, HUL and HDFC, rising up to 3.06 percent.

Sectorally, BSE IT and teck suffered a major blow due to Infosys crisis -- losing as much as 7 percent.

Telecom, metal and auto were among the other sectoral losers.

On the other hand, BSE healthcare, consumer durables, bankex, finance, oil and gas, FMCG and realty indices rose up to 1.56 percent.

In the broader market, the BSE midcap index slipped 0.09 percent, while the smallcap index rose 0.48 percent.

"Profit-booking in select large caps and negative sentiments after whistleblower allegations against Infosys CEO resulted in Sensex and Nifty to end 0.85 percent and 0.63 percent lower below 39,000 and 11,600 levels, respectively. Banking stocks emerged as clear winners while IT stocks dragged. Underlying sentiments however remained supportive on the global front as well as on domestic front as exit polls showed that the BJP will retain office in Maharashtra and Haryana," said Paras Bothra, Head of Equity Research, Ashika Stock Broking.

Market participants also kept a close watch on political developments in the country as the BJP looked set to retain power with a bigger mandate in Maharashtra, where it is in an alliance with the Shiv Sena, as well as in Haryana, as exit polls have forecast a facile victory for the party in the two states and a rout for its rivals, led by the Congress.

Elsewhere in Asia, bourses in Shanghai, Hong Kong Tokyo and Seoul ended on a positive note after US President Donald Trump on Monday said progress in developing the text of a partial trade pact with China means he will likely be able to sign it next month.

Equities in Europe were trading on a mixed note in their respective early deals.

Meanwhile, the Indian rupee appreciated by 20 paise to close at 70.94 against the US dollar.

Brent crude futures, the global oil benchmark, rose 0.36 percent to $59.17 per barrel.

Updated Date:

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