After a weak start following a weak earnings guidance from IT bellwether Infosys, and a subsequent rebound on the back of a better-than-expected industrial production report, the market faltered in afternoon trade following a weak trend in Europe and ended the day with notable losses on Friday.
Realty, automobile and capital goods stocks drifted lower. Bank stocks too mostly ended weak. Select consumer durables, healthcare and FMCG stocks edged higher, while metal, power and oil stocks ended on a mixed note.
The BSE benchmark Sensex, which declined to 18,638.34, ended the day with a loss of 129.57 points or 0.69% at 18,675.18.
The Nifty index of the National Stock Exchange closed at 5676.05, recording a loss of 32 points or 0.56%. It touched a high of 5725 and a low of 5659.35 during the day.
Infosys Limited reported a 3.49% surg in net profit at Rs 2369 crore for the quarter ended 30 September 2012, but cut both revenue and earnings guidance for fiscal 2013 due to the rupee's surge against the U.S. dollar. The IT major has forecast a 17/3% growth in revenue for FY 2013, lower than what a forecast for a 19.7% rise it had made in July this year.
Infosys shares declined to Rs 2317 in early trades, and despite staging a recovery, ended the day with a loss of around 5.3% at Rs 2395.
Among other IT majors, Wipro lost 2%, Mphasis ended 1.2% down, Tech Mahindra lost 1.6% and Oracle Financial Services eased by 0.6%, while Tata Consultancy Services and HCL Technologies recovered after early weakness and ended on the positive side, gaining 0.7% and 0.5%, respectively.
HDFC Bank ended nearly a percent up thanks to impressive results. The bank said net profit rose 30.06% to Rs 1559.98 crore on 24.47% growth in total income to Rs 9869.8 crore in Q2 September 2012 over Q2 September 2011. The bank said its asset quality remains healthy.
Federal Bank, IndusInd Bank and Union Bank of India closed higher, while ICICI Bank, State Bank of India, Axis Bank, Yes Bank and Bank of Baroda ended on a weak note.
IDFC, DLF, Cairn India, Sesa Goa, Reliance Infrastructure and BPCL closed weak.
ACC ended nearly 4% up. Lupin and Ambuja Cements closed higher by about 2.9%. Jaiprakash Associates, Grasim Industries, Ranbaxy Laboratories, Power Grid Corporation and Ultratech Cement also surged higher.
Bharti Airtel, BHEL, Hero Motocorp, Tata Motors, ONGC, Sun Pharmaceutical Industries, HDFC and Bajaj Auto ended with sharp to moderate losses.
GAIL India, Cipla, Hindustan Unilever, Sterlite Industries, Mahindra & Mahindra, NTPC and Tata Power closed on a firm note.
According to the data released by the government this morning, the Index of Industrial production (IIP) for the month of August grew at a robust 2.7% beating forecasts. According to revised estimates, the index had grown at a meagre 0.2% in July .
The manufacturing sector grew at 2.9% as against a contraction of (-) 0.2% in July. The mining sector grew at 2% emerging from its contraction of (-) 0.7% in July. In the April-August period, industrial production expanded an annual 0.4 percent.