Markets slump on dismal European data; Infosys nosedives

Commentary

oi-Sunil

By Sunil Fernandes

Published: Monday, April 23, 2012, 15:45 [IST]

Weak European markets dragged Indian stock indices lower with the Sensex closing the day lower by 277 points at 17097 points and the NSE Nifty ending lower by 90 points at 5200 points. Lower Flash Purchasing Manager's Indexes (PMIs) for Germany, France and the euro zone suggested that Europe was contracting at a brisk rate, which sent European shares tumbling.

Shares of India's second largest IT major Infosys fell more than 4%, on reports of investigation into visa irregularities in the US. High beta metal stocks fell with Hindalco, JSW Steel and Sterlite Industries losing heavy ground.

Other shares that nosedived today included the ADAG stocks including Reliance Communications, Reliance Infrastructure and Reliance Power.

Marketmen fear that the ongoing woes in Europe may continue to have a cascading effect on the markets.

Among gainers today were Reliance Industries, Sun Pharma, ACC and NTPC. Reliance Industries rose after a few brokerage firms recommended the stock, after the company put up a good financial performance in Q4.

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