Sensex sinks 389 points, Nifty below 18,500; IT, PSBs crack; HCL Tech down 7%
Bucking the global trend, domestic equity markets fell on Friday bogged down by profit booking in IT stocks, and heavyweights like Reliance Industries, L&T, and financials. The S&P BSE Sensex, which started about 100 points higher, erased gains and dropped over 700 points from the day’s high to hit a low of 61,889.
The index, eventually, closed at 62,182, down 389 points or 0.62 per cent. The Nifty50, meanwhile, breached below the 18,500-mark and ended at 18,497, down 113 points or 0.61 per cent. It hit a low of 18,410 during the day.
In the broader markets, the MidCap and SmallCap indices shed 0.45 per cent and 1 per cent, respectively.
Sectorally, defensive indices like the Nifty FMCG and Pharma held gains as they rose 0.8 per cent and 0.4 per cent. On the downside, the Nifty IT index crashed 3.16 per cent. Credit Suisse has warned of a 10 – 27 per cent valuation-led correction in tech-related stocks amid US macro headwinds.
The Nifty PSU Bank and Realty indices were other top laggards that tumbled 1.7 per cent and 1.5 per cent, respectively.
HCL Tech plunged nearly 7% as management was cautious on revenue growth for FY23. At its investor meeting held in New York on December 8, the management said the revenue growth guidance for FY23 is likely to come in at the lower end of its 13.5-14.5 per cent.
Paytm surged 7% on share buyback plan; board to meet on Dec 13. The company in a release to the exchanges said that the management believes that given the company’s prevailing liquidity / financial position, a buyback may be beneficial to the shareholders.
Shares of YES Bank vaulted 11 per cent on Friday on the back of massive volumes at the counter as 12.80 crore shares changed hands on the BSE.
Shares of Kalpataru Power Transmission (KPTL) rallied nearly 9 per cent to an intra-day high of Rs 566 per share on Friday as the company’s board approved a fund raise plan. In a filing on Thursday, the company said its board has approved raising Rs 99 crore via the issuance of non-convertible debentures (NCDs).
Digispice Technologies’ shares cracked 9.7 per cent to Rs 26.10 on the BSE after the company said its chief executive officer (CEO), Chandrachur Ghosh, has tendered his resignation. Ghosh will be serving his notice period till January 31, 2023.
Shares of information technology (IT) companies slipped in trade on Friday after Credit Suisse warned of a 10 – 27 per cent valuation-led correction in these stocks amid US macro headwinds. The Nifty IT index lost over 3 per cent in intra-day trade with frontline stocks such as HCL Technologies (HCL Tech), Mphasis, Tech Mahindra and Infosys slipping between 3 per cent and 7 per cent.
Here are some picks from the week gone by.
