* Infosys outlook below expectations, shares plunge 21.3 pct
* Defensive stocks gain as Infosys results spook cyclicals
* Wholesale price data, earnings next week key triggers for
By Swati Bhat and Abhishek Vishnoi
MUMBAI, April 12 (Reuters) - Indian shares recorded their
biggest single-day fall since late February on Friday after
lower-than-expected revenue guidance from Infosys raised
concerns about the outlook for the software services exporting
The benchmark share index closed down for a second
straight week, having fallen in six of the last eight trading
sessions. The index lost 1.1 percent this week, with foreign
investors selling shares worth a net 269 million rupees over six
days to Wednesday.
Concerns about the economic outlook and political stability
have sparked a selloff in shares. Data on Friday showed sluggish
industrial output, although a separate report showing slowing
consumer inflation raised hopes the central bank may cut
interest rates next month.
Those hopes lifted banking shares such as ICICI Bank Ltd
, although the gains were not enough to offset steep
falls in technology stocks following the Infosys results.
"Monday's inflation figure's influence on RBI policy and
earnings would decide the near-term trend. Expectations were
very high and therefore such a big reaction has come," said
Sandip Sabharwal, CEO - PMS at Prabhudas Lilladher.
Wholesale inflation data due on Monday will set the tone for
the coming week. Wholesale prices are expected to have risen
6.40 percent in March from a year earlier, according to a
"Across most sector people have become very sceptical on
earnings," Sabharwal added.
The 30-share benchmark BSE index closed down 1.62
percent, or 299.64 points, at 18,242.56, posting its biggest
single-day fall since Feb. 26.
The 50-share NSE index ended down 1.17 percent, or
65.45 points, at 5,528.55, and posting a 0.44 percent fall for
Infosys Ltd, India's second biggest software
exporter, slumped 21.3 percent, posting in its biggest
single-day percentage fall in a decade on the more actively
The slump came after Infosys forecast full-year sales growth
that missed analyst expectations, dimming hopes the company will
soon start reaping the benefits of its strategic revamp.
Other software services exporters also fell. Tata
Consultancy Services Ltd lost 1.64 percent, Wipro Ltd
fell 4.75 percent, while HCL Technologies Ltd
ended down 1.77 percent.
However, banking shares gained on hopes the Reserve Bank of
India will cut interest rates for a third time this year at its
May 3 policy review. However, investors are closely eyeing
wholesale price inflation data on Monday to set their
State Bank of India Ltd gained 1.9 percent, ICICI
Bank Ltd rose 0.5 percent and HDFC Bank Ltd
rose 0.7 percent.
Shares perceived to be defensive gained following the
disappointing earnings of the more cyclical Infosys. ITC Ltd
rose 2.7 percent, while Hindustan Unilever Ltd
rose 1.6 percent.
Among other defensive stocks, drugmaker Dr. Reddy's
Laboratories Ltd rose 1 percent.
Reliance Industries also gained 0.6 percent ahead
of its earnings on Tuesday.
For additional stocks on the move double click
FACTORS TO WATCH
* Yen recovers, euro falls one percent on day
* Brent oil falls to 8-month low; demand growth falters
* Shares set for second best week of 2013
* Foreign institutional investor flows
* For closing rates of Indian ADRs
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........ Japan....... S.Korea...
S.E. Asia....... Hong Kong... Taiwan....
Australia/NZ.... India....... China.....
Wall Street .... Gold ....... Currency..
Eurostocks..... Oil ........ JP bonds...
ADR Report ..... LME metals. US bonds..
Stocks News US.. Stocks News Europe
DIARIES & DATA:
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U.S. earnings diary European diary
Indian diary Wall Street Week Ahead
Eurostocks Week Ahead
For top Asian company news, double click on:
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(Editing by Anand Basu)