Money on the markets
A maturing market amid the mayhem
Shares in top IT firms plunged on concerns the rising rupee would squeeze margins in the export-driven sector.
IT bellwether Infosys dropped 2.5 percent, while Wipro and TCS fell 4.2 and 3.3 percent respectively.
TCS, which contributes 2.3 percent in the 30-Share Sensitive index, led the pack in terms of turnover, ending with volumes of nearly 14 million shares.
The BSE IT Index, which has gained nearly 100 percent so far this year, ended 2.7 percent lower in a broader market that closed 0.9 percent down at 16,806.
Market participants are worried that lower tariffs and increasing competition could hurt profitability of such firms. On Monday, Reliance Communications cut call charges across all networks to 50 paise/min.
Bharti shares closed down rupees 34.85 at 400.25 with volumes of over 6 million on the BSE, making it one of the most traded counters.
The Sensex rose 1.5 percent on Wednesday to close above the 17,000 mark for the first time since May 2008.
On the sectoral front, the banking sector led the indices gaining 3.6 percent followed by the Auto index, which rose 2.1 percent. The Capital Goods ended 1.7 percent higher.
Dr. Reddy’s shares jumped over 10 percent, Orchid Chemicals gained over 9 percent, and Aurobindo Pharma rose over 8 percent.
Shares of Infosys Technologies fell over 3 percent to 2,285 rupees on Thursday in a market that saw volatile trade with the expiry of monthly derivatives.
Leading the pack was Indian Overseas Bank which jumped over 7 percent, and Federal Bank which gained 3.1 percent. Bigger peers like SBI and ICICI ended the day in the red.
On Tuesday, its shares jumped by over 12 percent to 1,577 rupees and closed at their lifetime high.